Unsurprisingly, it is therefore "Nein". Angela Merkel expressed her opposition to the idea of issuing "corona bonds" at a European summit on Thursday. These were however desired by French and Italian leaders in particular, to respond to the crisis linked to the new coronavirus. "We have said on the German side, but also on the part of other participants, that it was not the conception of all the member states" to issue these joint European loans to support the economy, underlined the German Chancellor after the summit by videoconference.
Today # G20 leaders discuss how to coordinate our common fight against the #COVID ー 19 pandemic and take economic measures.
We need a global response to this global crisis.
Thank you @KingSalman for organizing the # G20VirtualSummit pic.twitter.com/Y1M3qhm9jf
Preference for the European Stability Mechanism
Angela Merkel, who has always refused the principle of pooling debts in Europe, reaffirmed her "preference for the MES", the European Stability Mechanism which is the emergency fund in the event of a crisis in the euro zone. "We have, I believe, with the MES a crisis instrument which opens up many possibilities and which does not call into question the basic principles of common action and responsibility for each one", she added. Clearly: to a large shared European loan, the Chancellor prefers the MES which can set strict conditions in exchange for its loans to countries in crisis, such as reforms difficult to make or savings to be made. What Rome does not want.
In a letter sent Wednesday to the President of the European Council Charles Michel, the leaders of nine European countries, including Emmanuel Macron and the Italian Giuseppe Conte, had called for the creation of corona bonds in order to have significant funds in the face of the exceptional health crisis shaking the EU. Pooling the debts of European countries is frequently requested by particularly indebted countries in southern Europe, such as Italy, but it is rejected by the northern countries.
A historic fear of hyperinflation
The fear of creating inflation, and above all of no longer being able to control it, of always dominating the economic policy choices on the part of these countries. The latter, like Germany and the Netherlands, more virtuous in budgetary matters, have always observed with distrust the southern states, which they consider more lax, especially since the debt crisis in the euro zone. This opposition to the idea of pooling debts culminated in 2015 during the stormy negotiations for a third bailout of Greece then in full economic slump.
World
Nine European leaders, including Emmanuel Macron, call for corona bonds
Economy
The partial unemployment scheme has already cost public finances 4 billion euros
- Economy
- World
- Coronavirus
- Europe
- EU
- Germany
- Angela Merkel
- European Council