Europe, Berlin towards the Eurobonds proposed by Macron | EUROtoday

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No from Berlin to the French president’s proposal Emmanuel Macron – within the interview with Sole 24 Ore and a few European newspapers – create a typical European debt capability by new Eurobond supposed to finance strategic investments in protection, inexperienced transition, synthetic intelligence and quantum applied sciences. A German authorities official near Chancellor Merz defined to Politico that Germany is towards the French president’s proposal, underlining the way it “distracts from the main topic, which is the problem of productivity” continent underneath dialogue on the casual summit of EU leaders on competitiveness scheduled for Thursday 12 February. “It’s true that we need more investment,” the official stated. “But, to be honest, this aspect falls within the context of the multiannual financial framework” and subsequently not inside the Eurobond speculation.

Priority to the reform of the EU funds

“Of course, more investments are needed, particularly in new technologies and defense, but this issue must be seen in the context of the next multiannual financial framework,” reported the federal government sources in Berlin, highlighting {that a} reform of the European funds is crucial and criticizing the present allocation of sources, as “it is not sustainable that two thirds of the budget continue to be allocated to mainly consumer spending such as agriculture and cohesion”. The hope is that even the international locations that ask for brand new sources “are ready to support profound reforms”.

The situation of unused sources

Strong warning can be expressed on the speculation of a brand new frequent European debt. “European indebtedness is not free: from 2028 the debt service of Next Generation Eu will weigh around 24 billion per year, equal to around 15% of the EU budget”, it’s defined, underlining that monetary margins are already restricted. The sources additionally highlighted how there are nonetheless giant unused sources: over 250 billion euros remaining Next Generation Eusolely a fifth of the structural funds spent thus far, the 150 billion program Safe for protection nonetheless not disbursed and the current inexperienced mild for 90 billion in loans for Ukraine, of which round 60 billion destined for the European protection business.