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Italy, France and Spain ask the EU to give green light to coronabonds


Pressing of Italy, France and Spain on the coronabonds in view of the summit of the leaders of the 27 scheduled for tomorrow. Giuseppe Conte, Emmanuel Macron and Pedro Sanchez, together with the prime ministers of Portugal, Belgium, Ireland, Greece, Luxembourg and Slovenia, have signed a letter addressed to the President of the European Council Charles Michel to ask to the EU to “work on a common debt instrument, issued by a European institution, to raise funds on the market on the same basis and for the benefit of all Member States, ensuring stable long-term financing to combat the damage caused by the pandemic”.

An opening comes from the President of the ECB, Christine Lagarde , reports Reuters, who allegedly asked Eurozone finance ministers to consider the one-off issue of coronabond. The proposal, however, clashes with the Nordic wall, Holland and Germany in the lead, who continue to reiterate their opposition to an instrument of debt mutualisation.

I 19 instead, reiterated today the president of the Eurogroup, Mario Centeno , expressed “broad support “to the possibility that the Mes uses precautionary credit lines, worth about 2% of the GDP of each country, to the member states that will ask for this security buffer.

The Mes credit line would allow governments to continue financing on low-interest markets and would pave the way for the unlimited purchase of ECB bonds under the program Outright Monetary Transactions (Omt), if necessary. But Centeno himself adds that in addition to the possible use of a credit line from the Mes, “the Eurogroup will continue to work on appropriate solutions to face the crisis we are facing and prepare for recovery. economic, including through the Mes and the Bei “.

In the letter of 9 to Michel, the leaders add that the European Union must work together to prepare for the 'day after' of the coronavirus and explore all the tools to face the economic crisis “in a spirit of solidarity”: specific financing is needed to support the costs related to the emergency at least for the 2020 and the 2021 beyond to measures already announced by the Commission.

The crisis triggered by the coronavirus constitutes an “unprecedented” shock that “requires exceptional measures”, added the 9, and asked Europe to “send the clear message that we are facing this shock all together”. “We will need to prepare together for the ' day after '”: “if we want tomorrow's Europe to live up to its past aspirations, we must act today and prepare our common future. Let's open this debate together and move forward without hesitation, “concludes the leaders' letter.

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