Lindner expresses disapproval towards von der Leyen's debt proposition.
During an interview, the President of the European Union Commission, Ursula von der Leyen, expressed her willingness to consider additional shared borrowing. This statement led to disapproval from the German Finance Minister, Christian Lindner, who perceives it as an issue that may negatively impact Germany specifically.
Lindner responded, "It's disappointing to hear Ursula von der Leyen suddenly discussing more joint EU debt." According to him, such concepts would negatively affect Germany, bringing increased liabilities and redistribution.
In the past, von der Leyen had told the "Financial Times" that she was supportive of further joint borrowing if the objectives were clear. It's worth noting, however, that the final decision lies with the capitals of the European Union countries.
The proposal for shared borrowing has been under discussion in Brussels for quite some time. France, for instance, has advocated for something called Eurobonds for defense spending. Recently, the European Commissioner for Economic Affairs, Paolo Gentiloni, also proposed the idea of a financing mechanism for investments, such as those in energy and defense, through joint debt.
The international community's coronavirus recovery program could serve as a potential model. The program, known as "Next Generation EU," is planned to last from now until 2026 and has a value of more than 800 billion euros. It aims to assist EU countries in recovering from the economic damage brought on by the pandemic. The debt resulting from this program will be repaid jointly by all member states until 2058.
Lindner highlighted that this particular program had been agreed upon by all member states as a unique exception. German citizens, in particular, were assured of this fact by the CDU and CSU. "There's no need for a change in direction because the economic effects of the pandemic program are mixed," Lindner declared, directing his comment towards CDU politician von der Leyen, who is campaigning for another term as the President of the European Commission. The European elections are scheduled to take place in early June.
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Source: www.ntv.de
