No Reconciliation in Europe

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European countries struggling with coronavirus are trying to provide the markets with the required amount of liquidity to keep the economy alive. To do this, they give SMEs more loans, and even direct money to citizens.

European Central Bank President Christine Lagarde recently made a recommendation to these countries and said they could issue Korona bonds. This idea, which was also suggested by domestic crypto commentators, Selcoin, was particularly reacted by Germany and the Netherlands. So why are Germany and the Netherlands so satisfied with this idea of ​​Corona bonds?

Is it necessary?
The idea of ​​Corona bonds in Europe has been hotly debated for some time. Finance ministers in Europe recently held a private meeting and discussed it for 16 hours. But there was no positive decision from this meeting.

 

Names like Christine Lagarde think that a common Corona bond issued by European countries can improve the European economy. According to these names, a bond to be issued by these countries by borrowing may alleviate the economic effects of the Coronavirus. Considering that the French economy is currently going through the worst period since the World War II, Europe really needs such a “mitigating”.

European officials have moved to different ways to alleviate the economic effects of the coronavirus. The European Central Bank recently announced an incentive package of 750 billion euros, which will be spread throughout the year. This package actually eased the pressure on European countries. So the question of whether or not the idea of ​​Corona bonds is really needed has begun to be debated. But to understand why this issue has been so debated, we need to address something different.

Anti-European Union
The reason why German and Dutch officials are so opposed to the idea of ​​Corona bonds is that this idea will not work. They oppose this idea for a different reason.

The fact that Europe will issue the Corona bond will mean that EU member states will enter a common debt. Germany and the Netherlands are exactly against it. Because the fact that these countries go into a common debt will mean that the nation states become weak and the European Union, which is a supranational organization, gets stronger.

Let’s take a closer look at who is opposed to the idea of ​​Corona bonds right now. For example, the Alternative for Germany (AfD) party opposes this idea. Founded in 2013, this right-wing party is now shown as the third largest political party in Germany. And this party is known for its opposition to the European Union. As can be expected, AfD was one of the parties that reacted strongly to the idea of ​​Corona bonds. An AfD spokesman even said in his statements about the idea of ​​Corona bonds:

German citizens should not have to owe all the EU due to the coronavirus.

Similar comments come not only from Germany but also from the Netherlands. Dutch Finance Minister Wophe Hoekstra made a statement just a few hours ago and said:

“As the Netherlands, we opposed the idea of ​​euro bonds, and we continue to oppose it. This idea will not solve the problems of the EU, on top of that, it will bring new problems to the EU. We will have to vouch for the debt of other countries, which is not very reasonable. ”

The fact that the countries in Europe enter a common debt and issue Corona bonds to reduce the economic effects of the coronavirus can really save the continental economy. But especially the countries in the North do not take this idea very warmly. Because these countries do not want to be in debt for the countries in the South just because they are EU members.

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