For Christine Lagarde, the cancellation of the Covid-19 debt is "unthinkable"

In the pages of the "Journal du Dimanche", the president of the European Central Bank protests against the idea put forward by certain economists to cancel the public debts held by the ECB.

Christine Lagarde says she is optimistic about the growth generated by investments and testifies to her confidence in the ability of states to repay their debt.

The cancellation of the Covid-19 debt is "unthinkable" and would be "a violation of the European treaty which strictly prohibits the monetary financing of States", underlined in the

Journal du Dimanche

the President of the European Central Bank (ECB) Christine Lagarde .

"This rule is one of the fundamental pillars of the euro," Christine Lagarde explained in the French weekly.

"If the energy spent demanding a cancellation of the debt by the ECB were devoted to a debate on the use of this debt, it would be much more useful! What will public spending be allocated to? In which sectors of the future to invest ? This is the essential subject today. "

>> READ ALSO

- "It is not serious to say that we will not repay the debt", explains Moscovici

More than 100 economists on Friday launched a call to cancel public debts held by the ECB to facilitate social and ecological reconstruction after the Covid-19 pandemic.

"We owe 25% of our debt to ourselves and if we pay that down, we will have to find it elsewhere, either by borrowing again to roll over the debt instead of borrowing to invest, or by raising taxes, or by lowering spending, ”explain these economists, including 50 French, including Thomas Piketty (Paris School of Economics), former Belgian Minister Paul Magnette and former Hungarian European Commissioner Andor Lazlo.

"Debts are managed over the long term"

"All the countries of the euro zone will emerge from this crisis with high debt levels," said Christine Lagarde in the

JDD

.

But "there is no doubt that they will manage to repay it. The debts are managed in the long term. Investments made in sectors which are decisive for the future will generate stronger growth."

"The recovery will create jobs, and therefore federate. We are moving towards another economy, more digital, greener, more committed to climate change and to maintaining biodiversity," she said again.

>> LISTEN

- Endless covid debt, but who will pay?

For now, she believes that "2021 will be a year of recovery. The economic recovery has been delayed, but not undermined. It is obviously eagerly awaited."

However, "we are not immune from still unknown risks", and "we will not regain the levels of economic activity before the pandemic before mid-2022", she warned.