EU members won’t agree to pooled debt, Gentiloni warns
Rome: The European Union’s economics commissioner said Monday that member states would never all agree to mutualised debt, but that a compromise with Germany was key to Europe surviving the coronavirus crisis.
One way to finance the massive effort needed to shore up Europe’s economy during the crisis “is to issue bonds, but not generically to mutualise the debt, which will never be accepted,” EU Economics Commissioner Paolo Gentiloni told Italy’s Radio Capital.
Ongoing disagreements among member states on what policy to take risked splitting and dooming the European project, added Gentiloni, a former prime minister of Italy. Gentiloni’s comments came after Italy and other southern countries lobbied unsuccessfully last week for so-called “coronabonds,” which would allow for pooled debt shouldered collectively by eurozone members. – AFP