La Francia spinge il debito congiunto per rafforzare il ruolo internazionale dell’euro

>Paris argues that investors are looking for a safe haven from US Treasury debt, so the EU should issue more joint debt to service the market, according to officials familiar with its thinking.  France and other heavily indebted countries, including Italy and Spain, have long pushed for more common borrowing in order to be able to spend more on priorities such as defence without adding to their national burden.

“There is a great opportunity for the euro to play a bigger role globally,” said IMF managing director Kristalina Georgieva at a meeting of EU finance ministers in Luxembourg on Thursday.

France can’t steal as much money from Africa as it used to and now wants EU to foot the bill with debt economy. And it is framing a good situation in the hopes that EU will be dumb enough to go with it.

EURO is not becoming a reserve currency or ‘greater international role’. Economies are weak and there is very little value added in global supply chains, and militarily euro is backed by weak organs. Above all, EU is still paying back old debts, and it can’t (and shouldn’t) be digging deeper into debt considering the economic portfolio of many countries.

>A senior EU diplomat said the commission will take into account Berlin’s opposition. But if the situation deteriorates “pressure will grow especially as some member states’ economy is in — well — not so good condition”. The EU is already struggling to repay the almost €800bn of common debt it issued during the Covid-19 pandemic to fund economic stimulus.

A lot has to change before euro is a viable option. Actually having a separate foreign policy and not existing as satellite or vassal state of USA is pre-requisite. For euro to become reserve currency, other nations have to see value in it. At the moment current EU barely registers as anything more than a footnote in modern USA’s global arm of influence.

>France and other heavily indebted countries, including Italy and Spain, have long pushed for more common borrowing in order to be able to spend more on priorities such as defence without adding to their national burden.

Sounds like all the more reason why we shouldn’t have joint borrowing. Those countries, mine included, need to learn to balance their budgets.

>The EU is already struggling to repay the almost €800bn of common debt it issued during the Covid-19 pandemic to fund economic stimulus.

>The European Commission estimates €30bn per year, or a fifth of the budget from 2028, will be spent on repayments, unless it refinances the debt. France says that issuing more debt on top would create enough liquidity to tempt investors, according to two people familiar with the matter.

So France’s proposal to address the large EU debt is to…issue more debt? Genius!

Good luck with selling the plan to the Germans and the Dutch.

> France pushes for joint debt to counter its rising debts and breaking of the 3% debt rule.

This will not go well

I swear my politicians are addicted to debt

The issue on the table

French plan to assume

State debt and establish a national bank

Mann Merz you have the floor sir

I would like to see the French cry when the German are going to reply : “ok but then we make your budget for you”

It’s a good idea, for most of eu countries they would pay less interest and the remaining one would only see a slightly uptick (Germany is gonna do a lot of debt now so I expect their yields to increase).

What it is important is the accountability, it should not be just hand out of debt money to countries. There should be the possibility of blocking funds to countries through qualified majority voting to irresponsable countries. Also money should be tied to specific goals/reforms

France is totally bankrupt and is absolutely impossible to reform.

Without that join debt, French credit spreads are going to explode, especially if LePen becomes president (as she is in lead right now).

Also don’t forget that throughout history, France has the habit of defaulting on debt. So I suppose the plan is to partly default on French owned debt, make EU buy what remains, and from there fly away to the next level.

I can’t speak for the Dutch but the Germans have become so obsessed with debt, they’re willing to sacrifice anything on its alter. Austerity to some extent worked, debt to GDP is lower, but the cost was infrastructure failing, trains that don’t work, lack of funding in schools, insufficient health spending.

I mean our internet infrastructure is laughable considering how much money we could invest in it. The joke is that the CDU are now the ones having to actually invest and increase the debt, shredding their reputation for “fiscal responsibility” built on never spending on anything even when it’s needed.