Nine Eurozone Countries Issue Call for ‘Coronabonds’

France, Italy and Spain and six other euro area governments have called for the issuance of joint European debt to finance the fight against coronavirus, setting up a clash with capitals including Berlin that believe the move is premature, the Financial Times reported. In a joint letter to European Council president Charles Michel, leaders from the nine countries said the EU needed “to work on a common debt instrument issued by a European institution to raise funds on the market on the same basis and to the benefits of all member states”. They argue that the move would ensure “stable long-term financing for the policies required to counter the damages caused by this pandemic”. The intervention came a day before a planned videoconference of EU leaders that is supposed to galvanise the next stages of Europe’s crisis response. But the concerted push for so-called coronabonds threatens to deepen the rift between capitals over how far and how fast the EU should harness common fiscal solutions to tackle the economic destruction unleashed by Covid-19. Read more