Leading EU countries – France and Germany – have just proposed the creation of a special fund for the reconstruction of the economy after the epidemic crisis.
EU and new fund
The fund is to have a size of EUR 500 billion, i.e. about 4 percent. GDP EU countries. At the same time, it means that it will account for about 50 percent. the size of the current Union budget. Where to get such measures? Through bond issues, behind which the European Commission would stand. In turn, these would be guaranteed revenues from the EU budget.
Why such an EU decision? Is it just about saving the economy? Ignatius Moravian with Bankier.pl believes that the topic has a deeper bottom:
“You can’t see it well from Poland, but The EU has found itself in an existential crisis in the last two months. The lack of financial solidarity in the face of an unprecedented collapse in GDP has meant that anti-European sentiment has rapidly increased in the countries affected by the crisis. Even liberal and pro-European Italians wrote that European integration loses sense without solidarity (see, for example, the article by Lugi Zingales, Professor of Chicago University). Combining this with the fact that countries have regained control of policies that have great potential for generating international conflicts (e.g. border protection, public aid for companies), we have received an explosive mixture that could eventually even strengthen disintegration processes in Europe. “
Interestingly, a week earlier, George Soros, a famous controversial investor who took the lead in defeating the Bank of England, took a similar initiative. He said the EU should start issuing special bonds to help save its economy.
– The type of bond I proposed would help to avoid this problem [kryzysu – przyp. Bitcoin.pl]because they would be issued by the EU as a whole and would remain eternal in proportion. Member States would only have to pay annual interest that is so minimal – for example, 0.5 percent. – that the bonds could easily be bought back by Member States – he said in The Independent.
– It is unbelievable how unprepared countries are for such a thing [jak obecny kryzys – przyp. Bitcoin.pl] – he added.
At that time, the media claimed that Germany and the Hanseatic League under the leadership of the Netherlands were in opposition to this vision.