the Head of The European central Bank recommended Tuesday, common debt issuance, at a meeting between euro area countries.
Nine euro area countries, the appeal before an EU summit for the euro area countries together issuing government bonds to finance the crisis measures in the corona-affected countries.
The typing of Italy, France and seven other countries in a letter to the EU president Charles Michel before a videotopmøde Thursday. News agency Reuters has seen the letter.
A common issuance of debt means that the countries that economically are completely different, is going to be liable for each other’s debts, but only to debts that are issued together. Italy and other countries already have a massive debt.
The tanks are normally very unpopular in the countries with stronger economies such as Germany and the Netherlands.
the Eurozone countries held a meeting on Tuesday evening. Here, the idea was also reversed. The head of The European central Bank (ECB), Christine Lagarde, recommended according to diplomatic sources at the meeting to do just this.
the Countries did, however, manage on Tuesday failed to reach consensus on new initiatives.
It is expected that the EU’s heads of state and government to discuss the matter Thursday. It is in this context that the letter from the nine countries will be read.
The other seven countries that have signed the letter to Michel, Greece, Spain, Portugal, Belgium, Luxembourg, Slovenia and Ireland.
– We need to work on a common gældsordning, which must be issued by a european institution, in order to raise money on the market, as it says in the letter.
the Scheme must be sufficiently comprehensive and long-term, argues the nine countries.
France has proposed that the government bonds must be issued by The European investment Bank. And the EU’s bailout fund – the ESM shall provide the guarantee.
It may be problematic in relation to the ESM’s rules, since the triggering of money from here, happens on condition that there is a plan for economic recovery.
It is necessary that it is done within the ESM’s mandate, said managing director Klaus Regling on Tuesday at a news conference. Here he said also, there are 410 billion euro in the box.
This is equivalent to 3.4 percent of gross domestic product in the euro zone.
the Crisis triggered by the corona virus will have very grave consequences for the EU countries.
the Economy of Germany – the largest in the european UNION – is expected, according to the research institute IFO in Munich to shrink by between 5 and 20 percent in the year.