EU finance ministers divided on joint bond issue, call for internal unity
The CCTV news client reported that the finance ministers of EU member states discussed the current economic situation at a meeting held in Luxembourg on October 4, and there were differences between the parties on whether to deal with high inflation through joint bond issuance.
European Commission Executive Vice-President Dombrovskis said at a press conference after the meeting that the finance ministers all agreed that the economic situation in the EU is still highly complex and uncertain, and that a contraction in economic activity this winter cannot be ruled out. possibility.
Although EU finance ministers agreed that tackling high inflation and the energy crisis is a top priority, there are differences of opinion on what to do.
At the meeting, the finance ministers of France and Italy and other countries called for the EU to stimulate economic recovery through joint bond issuance, but the proposal was opposed by Germany, the Netherlands and other countries. The German side made it clear that the EU’s current economic problems are mainly on the supply side, which is different from the demand side during the new crown epidemic. Therefore, raising funds in the form of joint bond issuance by member states will not help solve the problem.
On the eve of the EU finance ministers meeting, Germany announced 200 billion euros to support businesses and households deeply affected by soaring energy prices. Several member states questioned Germany’s approach at the meeting, arguing that Germany undermined the EU’s internal competition rules and was unfair to companies in other member states.
The meeting of EU finance ministers especially emphasized that unity and coordination must be strengthened within the EU to “avoid division”, and more common policies must be formulated and implemented at the EU level.