23 October 2020
What remains of last week’s EU policy? The good news is that the new European debt is going away like hot cakes, the EU is swimming in money. But there is also bad news.
What a fuss has been made about euro bonds and EU bonds! In the spring, the EU countries almost fell out over this, and Germany was also against it for a long time. But now that the first Corona bonds have been issued, they are a huge success.
Overall, there were bids for 233 billion euros, the two bonds were more than 13 times oversubscribed, the EU Commission said this week. The money that has now been collected is to be used for the SURE short-time work program.
With the successful start, Brussels set the course “to become the new reference on the euro bond market alongside the German state”, writes the “FAZ”who had always written against EU debt. The rating agencies awarded top marks.
IMF boss Giorgieva is also full of praise. “I say: Bravo! The Europeans have acted very decisively and appropriately, ”she said. The reconstruction fund, which provides for the EU to take out large-scale loans for the first time, is a model for the whole world.
The borrowed money goes not only into social programs like SURE, but also into climate protection projects. The EU wants to ensure that Europe comes out of the corona crisis not only healthier, but also more sustainable and modern.
However, there is also bad news: the same EU is still spending its money wrongly. The overdue reform of the agricultural policy failed this week. The EU subsidies continue to go to large companies; climate protection only plays a minor role.
But not only Brussels has set the wrong course. Berlin is also not prepared to use EU funds for future spending. The controversial decision of the agriculture ministers was made under the German Presidency, led by J. Klöckner (CDU).
And when it comes to using EU funds from the Corona development fund, i.e. from the debt pot, the Federal Government does not want to be persuaded. Berlin is in no hurry to meet the conditions that it has negotiated itself, reports the “Süddeutsche”.
That’s why this week’s balance sheet is not so great. The good intentions have already been forgotten, even with the German EU presidency …
See also “Can the German EUropa still be reformed?”
The corona crisis and the EU:
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Death blow or salutary shock?
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