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    Berlin rejects Macron's Eurobonds: the problem is not debt but the productivity deficit
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    Berlin rejects Macron’s Eurobonds: the problem is not debt but the productivity deficit

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    1. Massimo25ore on

      Berlin’s rejection of French President Emmanuel Macron’s proposal – in an interview with Il Sole 24 Ore and some European newspapers – to create a common European debt capacity through new Eurobonds intended to finance strategic investments in defence, green transition, artificial intelligence and quantum technologies.

      In fact, a German government official close to Chancellor Merz explained to Politico that Germany is against the French president’s proposal, pointing out that it “distracts from the main topic, which is the continental productivity problem” being discussed at the informal EU leaders’ summit on competitiveness scheduled Thursday 12 February.

      “It is true that we need more investment,” said the official. “But, to be honest, this is in the context of the multiannual financial framework” and therefore not in the hypothesis of Eurobonds.

      EU budget reform priorities

      “Of course more investment is needed, in particular in new technologies and defence, but this must be seen in the context of the next multiannual financial framework,” the Berlin government sources reported, pointing out that a reform of the European budget is indispensable and criticising the current allocation of resources, as “it is not sustainable that two-thirds of the budget continues to be allocated to predominantly consumptive expenditure such as agriculture and cohesion. The hope is that the countries calling for new resources “will also be ready to support in-depth reforms”.

      The theme of unused resources

      Strong caution is also expressed on the hypothesis of new common European debt. “European debt is not free of charge: from 2028 the debt servicing of Next Generation Eu will weigh in at around EUR 24 billion per year, which is about 15 per cent of the EU budget,” it is explained, stressing that financial margins are already limited.

      The sources also pointed out that there are still large unused resources: more than EUR 250 billion left over from Next Generation Eu, only one fifth of the structural funds spent so far, the EUR 150 billion of the Safe programme for defence still undisbursed, and the recent green light for EUR 90 billion in loans for Ukraine, of which about EUR 60 billion is earmarked for the European defence industry.

      Informal rendez-vous in a castle in Flanders

      The informal summit on competitiveness will be hosted in a castle in Flanders two years after the Letta report and a year and a half after the Draghi report, which pointed to solutions for the EU to regain competitiveness and make full use of the single market.

      The heads of state and government will gather for a brainstorming session, discussing how to unlock the EU’s economy, which has been struggling for many years, with growth rates far below those of the US, not to mention China.

      The twenty-seven EU heads of state and government will meet at the castle of Alden-Biesen, in the province of Limburg, former seat of the Teutonic Order, at the invitation of the President of the European Council Antonio Costa.

      There, an hour and a half’s drive from Brussels, they will discuss recipes and ideas aimed at making the European economy a little more dynamic, an indispensable basis for aspiring to the strategic autonomy that is increasingly talked about in Brussels.

      The numbers speak. According to the World Bank, in 2008 the EU had a GDP of 16.36 trillion (trillion) dollars, higher than the US’ 14.77 trillion. Since then, the North American colossus, which is a federal state and not a loose confederation like the EU, has been able to innovate its economy and has grown at rates significantly higher than those of the Union, partly due to the different responses of the two areas to the financial crisis.

      As a result, today the GDP of the US is an impressive 28.75 trillion dollars, while that of the EU stands at 19.5 trillion

    2. LookThisOneGuy on

      only natural after they betrayed the quid-pro-quo where we appeased them with no longer blocking the common debt for Ukraine defense loan and they were supposed to no longer block Mercosur. As we know, mere days after we [agreed to our concession](https://www.politico.eu/article/european-council-summit-eu-agrees-e90b-ukraine-loan-russian-assets-plan-fails/), France [voted against Mercosur](https://www.reuters.com/world/protesting-french-farmers-bring-tractors-paris-2026-01-08/).

      No more us making the first step in hopes of reciprocity afterwards. France needs to make concessions first this time and then hope we are truer to our words than they were.

    3. unbalancedbreakfast on

      The guy who worked 2 hours a week at blackrock speaks about productivity 🙂 that’s exactly my kind of humour

    5. Suikerspin_Ei on

      Not the first country against it. The new Dutch coalition is also against it. The Netherlands does not want to guarantee the debts of other countries. They’re open to borrowing money.

      I believe it depends what they count as Eurobonds. Previous government agreed on loaning together with other European countries for Ukraine. So who knows.

    6. helpfulinsurgent on

      Translation: the problem is definitive debt! We Germans dont want to pay for those lazy Greeks, French and Italians!

      And that, kids, is why we cant have nice things!

    7. Any-Original-6113 on

      Well, Macron pulled a clever move by voicing this initiative, effectively setting Germany up as the main scapegoat—the whole “we meant well, but it’s Germany blocking a massive investment surge in the EU” line (especially now, with crypto, gold, and the dollar showing such high volatility, so investors are looking for a safe harbor).

      From now until the end of his term, Macron will keep saying Berlin denied Europe a golden opportunity.

    8. CertainMiddle2382 on

      EU economies are completely incapable of productively allocate such sums.

      It will end up in useless « quantum gigafactories » that will be managed by French bureaucrates and McKinsey consultants…

    9. Professional_East281 on

      The united nations is about the only bureaucracy I can think of that moves slower than the European Union.

      The irony of using inefficiently as a rebuttal

    10. Informal_Drawing on

      The problem is the vast vacuum at the top of society sucking all of the money out of every person and organisation underneath them, leading to nothing working properly anymore.

    12. peepeedog on

      Europe will never be united like that. There isn’t that much cultural commonality in being “European”. And wealthy countries are not going to issue debt for poor countries.

      A common military buildup is possible though. And wealthy countries spending more than poorer countries on domestically produced weapons, and spending more on military manpower, has Keynesian benefits.

    13. Trollripper on

      I will be so happy once this fucker is gone from his current position. I just hope we get someone with more competence in the future.. because this is just madness

    14. GrowingHeadache on

      I don’t see why they couldn’t suggest that we countries can have eurobonds if they have a debt to go ratio below a certain threshold.
      We have a multitude of problems, including productivity.

      A more united Union would already help a lot and may accelerate our productivity. I’d imagine better capital flow allows for more innovation

    15. WeeklyPhilosopher346 on

      Germany, please elect politicians with more balls and sense and less caution masquerading as sense.

    17. Chester_roaster on

      We were told joint debt was a once off during Covid. People like Macron take a mile when you give them an inch. 

    18. zapreon on

      Sure, happy for there to be Euro bond’s but only for countries that at the moment of issuance have below 60% of GDP in debt. In addition, Euro bonds need to have a repayment preference over any other debt instruments, and in case of a country failing to meet its payments, the net lender EU countries should have the right to impose fiscal policy on the relevant country as they see fit. For example, if they agree that the French government should privatize some assets to raise funds or raise the pension age, they should be able to impose that. Lastly, countries should need to pay significantly higher interest rates in case e.g. budget deficit exceeds 3%

      Just because some politicians are unwilling to face the reality of decades of an addiction to spending more and more doesn’t mean that other countries’ taxpayers should pay the bill for that. Especially when it is nothing of strategic significance that is relevant for other countries, such as bankrolling very generous pension ages. Like if they had squeezed their welfare and were running a deficit because of large military missions in Estonia, sure, but this is just to pamper their own spoiled people.

      So if they are going to demand other countries to finance their fiscal budget, that should only happen under the condition that it is used prudently

    19. MELTDAWN-x on

      As usual, germany is blocking europe. They have been benefiting from a strong euro for ages, and don’t want to give back a single euro … ?

    22. Flipadelphia26 on

      Let’s just bookmark this for every single time this sub gets all on its pedestal about how great and mighty the combined forces of the EU are and how they’d send the Americans, Russians and anyone else tail tucked between their legs.

    23. __esparoba on

      Dilute the working class with cheap labour, make living a normal life unaffordable, then complain. Rinse and repeat

    26. Idlev on

      Th entire comment section is full of people that have evidently not read the article. It is all just empty paroles and bullshit.

    27. JumpyCarrot4053 on

      You guys here talk big words when its nice and easy in front of your pc. In the end a common debt will be mainly payed by us germans. We are the only major economy left in the EU with a AAA rating. We pay the most for ukraine and you guys still yap here

    29. Key_Perception4436 on

      Seems like a lot of countries that can’t manage their own Debt want more and more of this shared Debt idea

    31. MarcoCornelio on

      How is the EU supposed to finance itself without a common debt?

      It could take more money from its members, but some countries don’t have that money, so, what is the alternative?

      Greece did everything it was asked of them and got their finance under control, but they still don’t have the budget

      Italy too almost got it under control, and they too don’t have the money

      Even if fixing it was possible, it takes too much time, time the EU doesn’t have, so, what is the alternative?

    32. Betaglutamate2 on

      Nobody gets it without a European market and bank there will be no European growth.

      Europe must become one to be a major player in today’s world if not we are doomed to slowly fade into irrelevance.

    33. toxicsiren on

      Can Merz already shut up about productivity? They are trying so hard to abolish worker rights here, its insane. To boost „economy“ which is code for „stakeholders“ and „corporations“.

    36. silverionmox on

      And the productivity deficit is caused by dinosaur industrials being coddled to allow them to keep producing the last century method of transport, combustion engines. It is caused by letting crucial infrastructure dilapidate because the *schwarze null* is considered more important. It is caused by sticking to tiny national budgets and capital markets.