Il capo della Deutsche Bank scuote la Germania definendo “logico” finanziare la difesa europea con il debito comune

It’s logical and much cheaper. It seems CDU conservatives do need a bit of shaking up. Some of them still dreaming and mentally stuck in the 20th century.

I have no problem with common debt if we choose a model that takes into account the discrepancy between national budget situations of the member countries (e.g. blue and red bonds). If we just ignore that, the more fiscally disciplined countries will end up indirectly financing the less disciplined ones.

The head of Deutsche Bank has called for consideration of the use of common debt instruments to finance defence efforts in Europe, sparking a sensitive debate in Germany, where Eurobonds are generally considered taboo.

‘Strategic investments in our defence are much more effective when made at European level,’ Christian Sewing said on Monday evening in Berlin. “It would therefore make sense to opt for joint financing, for example through the issuance of bonds based on the Next Generation EU fund model. The financial markets would be willing to finance this initiative. ”

From his point of view, European security meets these criteria, while the rules-based world order is gradually being replaced by a geopolitics of power and spheres of influence. ‘Germany and Europe must be more active if they want to maintain their geopolitical and economic importance,’ says Christian Sewing.

This is the first time that the Deutsche Bank boss has gone so far in his defence of a common debt to finance European security. He thus joins a position defended by France and its president Emmanuel Macron.

According to sources close to him, he is aware of the sensitivity of the issue, which could trigger a debate within the coalition led by Friedrich Merz.

Within his own party, Friedrich Merz is already being criticised for breaking a campaign promise by reforming the sacrosanct debt brake rule immediately after his election in February in order to deploy hundreds of billions of euros in infrastructure and defence. This U-turn breaks with years of austerity and has particularly upset the conservative wing of the CDU.

Close to the Chancellor, Christian Sewing is nevertheless setting conditions for joint debt. ‘If we choose this path to strengthen Europe’s sovereignty and resilience, we must also ensure that we close the gaps that undermine this sovereignty and hinder the necessary momentum,’ he said, calling for reforms, particularly in EU governance.

As the war in Ukraine enters its fifth year, Europe has de facto paved the way for the issuance of joint debt to support Kyiv against Russia. At the end of December, the heads of state and government of the 27 states decided to grant Ukraine an interest-free loan of €90 billion, foregoing the use of frozen Russian assets as Friedrich Merz had hoped.

There’s a reason that bullying the Germans is part of NATOs core mission

The only problem is that Deutsche Bank is a complete failure that can’t run any business without being constantly bailed out by the government. Not someone you’d listen to on any important issue.