in Front of a trend-setting video conference of EU Finance Ministers intensified the dispute about the adequate financial fire-power against the economic consequences of the Corona-crisis. In the centre of the discussion about the so-called Corona-Bonds, common bonds of EU members to Finance the EU-member-States. EU Commissioner for economic Affairs, Paolo Gentiloni, called for the Federal government refuses to do more.
“We need a European economic recovery programme and should be financed through the issuance of bonds,” said Gentiloni of the newspaper “die Welt” (Saturday). “The issue of bonds should be earmarked for the purpose of a one-off measure in exceptional circumstances. I think Germany and other Northern European countries can accept that.“ Reuters/Thanassis Stavrakis/AP/dpa EDU-Commissioner for economic Affairs, Paolo Gentiloni.
“It’s not about the debt of the last 30 years,”
The EU States were divided in a video summit last week over the question of whether Corona-Bonds are in the crisis. Among others, Italy, Spain and France are in favour of Germany and Austria. The EU Finance Ministers are expected to develop up to this Tuesday new models. What is the ESM’s what Corona are Bonds?
Euro rescue Fund, the ESM: of The ESM, countries such as Greece in the financial crisis, the state saved bankrupt. According to previous discussions, the Minister of Finance could be provided by the ESM for each country low-interest loans of two percent of its economic output.
Euro group chief Mario Centeno, this would be a total of up to 240 billion euros, the gravity of the epidemic struck, and at the same time already highly-indebted Italy could get up to 36 billion euros. Dispute are the terms and conditions, because usually there is in the case of ESM loans, hard constraints and reform requirements. Centeno sees but a willingness to loosen these.
Corona-Bonds: Italy’s head of government, Giuseppe Conte had at the EU summit in mid-March, “Corona-Bonds” proposed. The Euro would give out-of-States share common bonds. There are also countries with a high credit rating like Germany, a fall in interest rates for heavily indebted countries. Behind the proposal from nine countries, including France and Spain presented themselves. But in particular Germany and the Netherlands reject such Euro Bonds, strict: they fear that, in the worst case, for the debts of other States.
“The message to North Europe is not: We are talking about the mutualisation of debt,” said the Italian Gentiloni. “Now it comes to joint debts in the fight against the Coronavirus and its consequences, not the debt of the past 30 years.”
Scholz promotes the Three-step-Plan
Also from Spain at the end of the EU foreign policy chief Josep Borrell called for this solution. Europe have the means to act in solidarity, wrote in the federalist in an article for the French newspaper “Le Monde”. “And for that, we need to demonstrate creativity and pragmatism, otherwise will ask the most affected groups of the population, what Europe stands for, if it is not able to respond to your life to give important concern.”
Recently had the EIB initiated a compromise which provides for a package of three Parts: precautionary credit lines from the ESM rescue package, guarantees from the European investment Bank and the European Commission’s proposed programme for the support of short-time work models. This Plan also is opposed to the support of the German Finance Minister, Olaf Scholz (SPD), the Corona-Bonds. dpa/Michael Kappeler/dpa Finance Minister Olaf Scholz (SPD)
Scholz recruited in a joint guest post with foreign Minister Heiko Maas (SPD) for several European Newspapers (Monday) for this Three-pillar model. “European solidarity is not a one-way street, but the best life insurance for our continent,” wrote the Minister. “Europe’s common task now is to flank the existing (national) programs to fill the gaps and the need for a safety net for all EU countries, for more support.”
Even some CDU-politicians are for Corona-Bonds
Also, Union leader Ralph Brinkhaus was behind the Three-pronged Plan. “These instruments are quickly applicable. What is crucial is that the money and aid will arrive soon,“ said the CDU politician of the German press Agency. Corona-Bonds, he rejected also: All of the measures require the Amendment of the European treaties, are “goal-oriented”.
Similar to Chancellery chief Helge Braun said. The CDU-politician said the “Frankfurter Allgemeine Sonntagszeitung” (FAS), the Federal government was “skeptical of everything that threatens the stability of the economic and currency area”.
However, there are also voices in the government coalition, the campaign for Corona-Bonds. So about a CDU Executive Board member Elmar Brok of the “FAS said,” because of the catastrophic situation in countries such as Italy clearly defined and limited” European Corona-bonds were “as part of a package of aid “inevitable”. Lehne, Germany, strength is the only populist. “Then circle the Le pen and Salvini’s pleasure.”
German Opposition divided – experts,
SPD-Chef Norbert Walter-Borjans, said in an interview with three European Newspapers once again, he was for Corona-Bonds, but for also controlling Reiterer is currently no time. Therefore, first of all, existing instruments such as the ESM, should be used. “Then we have the time to fight to ensure that we get with Corona-Bonds, the necessary volume of the necessary long duration and the need for Fairness,” said Walter-Borjans. Reuters/Fabian shrub/dpa SPD-Chef Norbert Walter-Borjans,
the Corona-crisis-stricken Italy insists on Bonds. “The common European response is only appropriate if it includes the common issuance of European Bonds to Finance the national Coronavirus emergency plans”, stressed Minister of Finance, Roberto Gualtieri, on the Friday evening. The Opposition in the Bundestag is divided: Green and Left to plead for Corona-Bonds, AfD, and FDP reject you.
the head of The “economic wise men”, Lars field, stood behind the Minister of Finance Scholz. “Joint and several liability means a high fiscal risk for each individual member state. This cannot be allowed to happen,” said the Chairman of the expert Council of the “Rheinische Post” (Saturday). Not even in Germany there is this liability between the Federal government and the länder. Overall, the German scientific community is divided, however: A survey by the Ifo economic Institute, according to 46 percent of the respondents are in favour of Economists, the introduction of Eurobonds, 43 percent oppose it. Doctor warns of rubber gloves: “Hygienic mess on a large scale” FOCUS Online/Wochit doctor warns of rubber gloves: “Hygienic mess of major proportions”
flr/dpa/AFP
