Gentiloni: “We Want Fresh Funding!” – The EU Will Incur Fresh Debt Of 350 Billion Euros
Paolo Gentiloni, the EU’s finance commissioner, requests Germany’s consent to a decision
Paolo Gentiloni, the commissioner for the EU’s economy, wants Berlin to approve a proposal that would see the EU take on more debt.
The War’s Aftereffects
“The European Union must soon take on a fresh debt of 350 billion euros in light of rising energy costs, billions in US help to industry, and competition from China,” argues Mr. Gentiloni in an interview with the Frankfurter Allgemeine Sonntagszeitung.
The Commissioner also highlights the many problems that Europe is now facing and emphasises the need for assistance for the European economy as it deals with the fallout from the conflict in Ukraine.
Not All States Can Accomplish It On Their Own
“He adds: “We must take into consideration that not every state can deal alone (…) And as a signal to the markets, we must avoid creating the idea that we are just shifting back and forth with existing money. This crisis mostly impacts Europe and emerging nations, not the US and China. We must act quickly because we need additional money.”
Christian Lindner, the FDP’s finance minister, and Mr. Gentiloni will meet tomorrow in Berlin. Mr. Lindner has already spoken out against the idea of the EU assuming collective debt.
Chancellor Olaf Scholz also often highlights that only a portion of the 750 billion euros allocated for the Reconstruction Fund in 2020 has been spent to address the effects of the coronavirus outbreak.