Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

and just like that ... mutualised debt looks a given now Merkel and Macron are on board. They just need to trample over the small economies of the frugal four .... and then the real mutualised debt can start piling up.

It must be great to be Italian knowing you can spend what you like knowing the Netherlands will pick up the tab

https://uk.reuters.com/article/uk-ge...-idUKKBN2402HG

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

Someone here argued the other day that the EU is run by the Germans. From the map in the article (which started this thread) one can see that Germany opposes EU bonds.
So when Angela runs the EU there will be not bonds.

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

Merkel will do anything to protect the Euro (the rebranded Deutsch Mark)

Here comes mutualised debt - its been coming for a long time. Nothing like a pandemic and trashed economies to deliver "more Europe" and further political (and now monetary) integration.

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

The UK will have to “live with the consequences” of Boris Johnson ditching Theresa May’s plan to maintain close economic ties with the EU after Brexit,*Angela Merkel*has said, hardening her tone over the prospect of a no-deal scenario at the end of the year.

After more than three years in which the German chancellor repeatedly emphasised her openness to a deal that would maintain the UK’s current flows of trade with the bloc, she suggested the door leading to such a compromise had now closed.
Speaking days before Germany takes over the EU rotating presidency, Merkel made clear that her priority was instead to push through a*pandemic rescue plan*to stop Europe’s economy sliding into the worst slump since the 1930s.
https://www.theguardian.com/world/20...s-to-eu-brexit

From the link bread just provided comes this quote:

Merkel, who had initially rejected a proposal by Macron for a recovery fund, dropped Germany’s long-held opposition to mutualising debt to fund other member states when it became clear that the pandemic was an existential threat to the EU.

“It will not fail because of us,” she said of summit talks on the recovery fund.

But the article also states:
“Myriad talks” remain to be held, Merkel told a joint news conference with visiting French President Emmanuel Macron, but added: “We hope we can find a solution, even if there is still a long way to go.”

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

But obviously it also means, bye bye UK go find yourself a trade deal elsewhere. And as you know the UK has great difficulty to keep the trade they lose from the deals they benefited from as EU members (with japan, australia, new zealand).

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

Solasch, I listened to nearly her full speech and I must say that her tone was not really hardened. She used a commonplace when she said that B.Johnson had to live with the consequences. That conclusion is obvious, everybody has to live with the consequences of their decisions.

The part which was interesting was her clear message about the pandemic being the most pressing subject for the EU in the near future. She does not state things so clearly and definetly very often.

Imo there was no part where she said that some doors were closed. At least I did not hear one.

Concerning Euro bonds there must be a lot of water floating down the Rhein river before we will see those. This german saying means that there will be much time spent before something happens.

Dr. Merkel is much too clever to give in to the request for dept mutualising easily.

I think that meanwhile everybody must be convinced that a trade agreement is impossible. But of course nobody wants to be blamed for it. It is a sign of politeness to pretend to be interested in real negotiations.

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

We have a similar saying. I live near the Rhein (at the waal actually) so I see a lot of water passing tranquilly.

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

Good for you. I hope you have your finger ready to plug the hole in the fiscal dyke that's surely about to happen when the Eurobond business goes belly up as happened with Freddie Mac and Fannie Mae in the USA when sub-prime mortgages were mutualised.

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

My finger is ready to plug a lot, but not a dyke

Re: Corona-Bonds : The Second Attempt at EU Debt Mutualisation

The ECB "Bad Bank" proposal looks a bit of a horror

Here come loan and mortgage defaults !