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The European Union is more divided than ever. The big divide this time is how far financial solidarity can go in fighting Covid19 and its economic impact. Germany and the Netherlands are vehemently opposed to the idea of the so-called coronabonds. this idea of joint borrowing of debt on the international markets, to allow member states to finance their efforts of combating the virus but with the full weight of the whole of Europe behind that debt, so the cost would be lower for more fragile states such as Italy. Germany and the Netherlands are particularly opposed to this. While 9 European countries, among them, are Italy, France and Spain are demanding common debt Eurobonds also called the coronabonds . But Germany and Austria and other wealthy north European countries are saying, we cannot afford these Eurobonds, because we do not know how we will come out of this unprecedented crisis. Italy is asking quite bluntly what the EU is for if they cannot help us now when we need help. Germany, the most robust economy in the EU, does not want to guarantee those loans. 👉 For the full transcript go to https://financearmageddon.blogspot.com
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