Politics

Corona Help: “Briefly fights something that Merkel and Macron do not demand”

COURIER: Angela Merkel and Emmanuel Macron have made the advance in the countries in Europe, the the Coronavirus hit hardest, helping with an additional 500 billion euros. The EU commission should be in the name of EU They are allowed to borrow and there should be grants to regions in need that do not have to be repaid. chancellor Sebastian Kurz now says like the heads of government of Holland, Sweden and Denmarkthat he only wants loans that have to be repaid and not a “debt union”.

Philipp Heimberger: Briefly fights something here Merkel and Macron don’t ask at all. Your suggestion is temporary, Merkel and Macron want to increase the EU budget for three years. The additional EU funds would also be clearly earmarked for regions and sectors most affected by the pandemic. In other words: The Franco-German proposal contains no joint and several liability of individual member states and no permanent transfers – and therefore no “debt union”“. A menetekel that Kurz paints on the wall. I don’t understand why the Chancellor is using the concept of struggle. A” debt union “is wanted Merkel also not, this is in the CDU not majority capable.

How do you see the proposal of the self-proclaimed “frugal four” compared to the Merkel-Macron initiative?

The “economical four” only want loans to be repaid as part of the reconstruction fund. This, of course, would put the government debt ratios in Italy and other countries and lead to follow-up problems.

Why?

When interest rates on Italian government bonds rise, come Italy vacuum, and this will destabilize the Eurosystem at the expense of all Member States. What does the Franco-German paper want? The EU commission would borrow on behalf of the EU issue. The member states provide guarantees as a basis for this. The states are doing this with their future EU contributions. There is also a clear legal basis for the implementation of the Franco-German proposal in the EU treaties, so nothing is being “introduced through the back door”, as is often claimed.

The German foreign politician Norbert Röttgen from the ÖVP sister party CDU looks in Austria Advance even “a mere provocation” because of this the problem of the already high debt in Italy and only exacerbate other countries.

Yes, you can see it that way. It is illogical if the Austrian government criticized the national debt in Italy are too high, and at the same time reject the Franco-German proposal to reduce the debt ratio. Insisting on only repayable loans is a sure recipe for higher government debt ratios Italy and Spain.

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