Germans “are no longer allowed to play the fiscal Taliban in Europe”, says Gabriel. EU Foreign Affairs Representative Kaja Kallas spoke out in favour of joint European debt to finance defense spending. Joint borrowing makes loans cheaper for everyone, Kallas said
https://www.welt.de/politik/deutschland/article698da3ad0abe5c8b74eccc2a/verteidigung-deutsche-duerfen-nicht-laenger-die-finanzpolitischen-taliban-in-europa-spielen-sagt-gabriel.html
Posted by goldstarflag
43 Comments
Fiscal Taliban lol :DDDDDD
Ahead of the Munich Security Conference, EU foreign policy chief Kaja Kallas spoke out in favor of joint European debt to finance defense spending. Raising capital together makes loans cheaper for everyone, Kallas said in an interview with „Table.Briefings“.
That is why this step makes sense – even though she understands “the sensitivities in the German debate” on this issue very well. The EU had already incurred joint debts during the pandemic, and just as then, it is now once again facing a threat to all of Europe, said Kallas, who is one of the most vehement critics of Russian President Vladimir Putin.
The chairman of the Atlantic Bridge and former German Foreign Minister Sigmar Gabriel also considers new EU Community debt for armaments projects to be inevitable. The Germans „are no longer allowed to play the fiscal Taliban in Europe“, said the former SPD chairman of the Funke media group. The German position is always that defense spending is a matter for national budgets, but even here it can largely only be financed through debt.
In his report commissioned by the EU Commission, Mario Draghi, the former President of the European Central Bank, rightly recommended that we also take on joint debt to finance European defense, said Gabriel. That is expensive and also carries risks. „But Russian troops on the border with Poland are a greater risk and, incidentally, more expensive.“ For the EU, the need is growing „every month, simply because of the threat situation“, said the former minister. „Should we wait until the first drone flies over Berlin?“
Gabriel also suggested that Germany support France and Poland in their defense efforts: „Why don’t we offer the French the opportunity to combine our two countries’ defense spending and finance it with the German AAA‑rating?“ This would be a huge relief for the French budget, says Gabriel – and would show that German‑French friendship is indeed worth something.
Poland could be supported by paying more for existing NATO funds to strengthen the eastern flank, he suggested.
lmao where the fuck does the term ‘fiscal Taliban’ even come from
what does it even mean
I, as an fundamenalist austerity worshipping swabian houswife, feel deeply insulted and demand respect for my religious practice, … or else!!!!
Yep that will make the Germans ( and all the other that Share the German Point of view) cooperate.
Just to put some context on this headline: it does not make it cheaper for everyone. German bonds have lower yields than those emitted by the EU. So there is some valid ground for skepticism on the German side.
He mentioned “Fiscal Taliban” likely simply to get public attention and engagement.
And he seems to have succeeded with that.
Countries like France have a serious spending problem which can be harmfull for other EU countires. The solution is not more cheap money for these countries. If they want more money they should reform.
The real problem of Germany is that we see EU politics as some kind of landfill where we dump all the politicians that would damage the image of their party if they would still be a part of national politics.
It’s easy for Kallas to be in favour of joint borrowing, the amount contributed by Estonia would be very little but they would benefit a lot, considering how small their army is.
Little responsibility, all the benefits. Let someone else pay.
Actually from a political PR perspective, i find this Fiscal Taliban thing quite effective, and funny. It very well could stick
naturally, it’s not Greece any more
r/brandnewsentence
what is a fiscal Taliban?
Common debt can only work if you harmonized everything else. Same taxes, same pensions, same working conditions, same everything really, because it can only work if the EU is a single country…
The US also does not have joint debt. Floridan debt stays with Florida, Californian with California and Texas with Texas.. State debt is not joint.. The US Federal debt is like the already-existing debt by the European Commission… So that whole concept is extremely radical for the European Union…. Especially in the current situation… One can thing about it, after the EU is a single country……… Not before…. What the hell…
Fiscal taliban ? Germany as like one of 4 countries who would not only have no benefit, but have a downside because borrowing would get more expensive under a joint-rule, is sure thrilled to be insulted like that… Just look at the example of pension. France finances their pensions with debt, and retirement age is 62… I am sure the Dutch and Germans are so thrilled paying for French pensions….
Germans and Dutch — you lived so frugally you saved up a fortune.
Now the rest of Europe will happy to spend it
Joint financing is fine but does that mean that all countries participating will also cede a portion of their (edit fiscal) policies to the EU?
>Fiscal Taliban
This is sending me so hard I can’t finish the rest of the headline
Nobory wants to finance Hungarian debt though. If we’re to have joint debt it must be for truly joint things like EU army, not individual members army.
10 year bonds in Denmark is 2.25% for 2026.
Not that it matters a lot since Danish National Bank prefers 1 or 3 years at 1.6% or 2.07%.
Contrary to the image of Denmark as a frugal 4 member the country might back common eu debt. Not because Denmark will suddenly begin borrowing a lot, but because the last 15 months of frustration has shown Denmark it can not fully depend on old allies. Eu must be sulf suffition and capable of producing what it needs on demand, even if cost a bit more.
This situation kind of reminds me of hamiltons economical reforms in the USA. Even the arguments sound alike
> Joint borrowing makes loans cheaper for everyone, Kallas said
Does it for the more fiscally conservative countries?
I think we Dutch are way worse like the fiscal ISIS
Yea, they get cheaper because it’s YOU who doesn’t have to foot the bill, when you finance your voter presents with debt.
I think it’s a very difficult situation. Given the level of integration the EU currently has and how politicians blame the EU for domestic problems, I think it is too early for common debts. But without common debts, we are also in trouble because of the €, which was introduced too early.
A common currency without common debts is problematic for poorer countries. One of the most effective ways a country has to deal with debts is to devalue their own currency. Also helps with imports vs exports. Of course, there is a pretty hefty price in people’s savings getting lost, but even the threat can be enough to make a deal with the debtors.
But if you don’t control your currency, you can’t use this. I think this one of the reasons why Greece was in the trouble it was.
It does not make it “cheaper for everyone”, it makes it cheaper for countries that have ignored warnings and kept overspending recklessly for decades while making it more expensive for frugal countries that sacrificed luxuries/benefits for their own populations to make sure they pay back debts in time. In what world is that a fair exchange?
God, there is an obvious joke right there about the immigrants which I am not going to say.
Joint borrowing makes loans cheaper for everyone, except countries with good debt/gdp ratio who will pay more! They got their by being frugal and/or taxing their population with high taxes, and worming longer. If we would share debt/loans, I’d suggest those who have small debt loan a large sum to level the high debt countries. Either by massive investments or high tax’s cuts.
Meanwhile France: government debts goessss brrr, pensioners living on the state rejoice.
Give me one good argument why I should be liable for France’s debt if they refuse to play by the rules and live like Louis the 14th on borrowed money. B
Are you fucking kidding me lmao. If we get a say in french social security payments then we can pay for them, sure
> Joint borroeing makes loans cheaper for everyone
PROVE IT.
Just claiming and again and again and see users spamming these claims on social media doesn’t make it true. Multiple ccountries in EU hold an AAA rating. Not only Germany. How about any of these politicians, just once, manages to show what these countries get out of Eurobonds.
EU btw, already does not hold AAA rating.
Whether this gets upvoted or downvoted, the point is not that I believe that more debt is good or bad. The point is, that I have not once seen a proper case to be made to benefit of the multitude of AAA rated nations. Only France and a few others. And of course the EU establishment, that would see its political pwoer strenghtened by effectively taking over financial potential from member states.
Calling these countries, whose fiscal situation would actually be the ones that keeps Eurobonds somewhat cheap, terrorist, doesn’t sound like a proper argument to me. Rather, show me how the added safety by distribution of risk overcompensates for the fact that these countries would unify with a lot of worse debtors.
Edit: Btw, the idea of diversification into solely inferior assets including stability is fundamentally the same concept as what was done with the CDOs that caused the subprime crisis.
We already have joint EU debt for defense spending it’s called SAFE.
Can’t wait to work till 70 so the French can keep their pension age at 60 and their deficit at 130%+
I will only support it if all countries instate the same pension ages. For example, the French retire way earlier than us, and now we would have to pay for that? No way. I will have to work until I am 71, while the French retire at 62, and then they want us to finance their mess?
Aren’t the dutch even worse fiscal talibans of the EU? I believe they kept austerity measures going even during covid and was hammering there opinions on the debt to everyone even to Germany awhile ago.
In the end Germany will be paying the majority of whatever it is the EU does, as we always have.
The countries who are the worst lending risks probably love a collaborative debt scheme the most.
This is Estonia’s rating.
https://tradingeconomics.com/estonia/rating
Hmm, AA, not bad.
Joint borrowing is only cheaper for those nations with bad credibility but more expensive for countries that gained trustworthiness on financial markets over decades
So what’s the upside for Germans? They already have triple A rating.
“Joint borrowing makes loans cheaper for everyone.”
No, it does not. It makes it cheaper for those with a bad credit rating and more expensive for those with a good one. The latter will simply refuse to participate as long as the former don’t get their house in order.
We should talk about joint debt after the Maastricht criteria are met by every EU country
It’s weird to use this kind of rhetoric for what amounts to a perfectly reasonable policy disagreement.
As a Dutchie whose pension age is expected to be 72, ofcourse I would love to pay more to finance Frances welfare and pensioners at age 62. /s