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Germany’s Lindner pushes back on new EU debt in response to war in Ukraine – POLITICO


German Finance Minister Christian Lindner has pushed back on calls for the EU to issue new common debt to fund increased defense and energy spending in response to Russia’s invasion of Ukraine .

Asked about Lindner’s position today, a ministry spokesperson referred to comments the minister made Monday at a joint press conference with Dutch Finance Minister Sigrid Kaag.

“We support Ukraine. There is also a joint European effort to continue supporting Ukraine. But this is independent of a debate on financing instruments. Joint liability in Europe through the issuance of joint bonds is not on the agenda at the moment,” Lindner said.

Several media, including Bloomberg and Le Monde, reported that the EU was in talks on a major new fund, which would be created in response to the war and financed by common debt.

Bloomberg said the EU would unveil a borrowing plan “on a potentially massive scale to fund energy and defense spending.” Le Monde said the fund would cushion the backlash of sanctions on EU economies and help EU members diversify their energy supply. He said France also supports the use of the fund for defense spending.

POLITICO reported last week that the EU was considering a series of measures to deal with the economic impact of the war. These measures could include the reassignment of loans, new debt to raise funds for loans in case of energy price spikes, and new guidance on fast-tracking state grant approvals, officials and diplomats said.




Politico

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