The proposal for a European Sovereign Facility (or ESF), which would allow the European Commission to issue part of the debt of the European Union Member States (see EUROPE 13905/27), will be discussed in the coming months, “first at deputy level”, said Eurogroup President Kyriákos Pierrakákis on Thursday 9 July after the meeting of finance ministers.
“We have had historic disagreements in the room. But having said this, this is a discussion that is merited to be made”, Mr Pierrakákis said. “All of us, regardless of where we agree and where we disagree, have a common understanding about the fact that we need to move fast. And in this regard, we’re engaged. We discuss every option. We discuss every idea, and we try to reach consensus where this is possible and achievable”, he continued.
Madrid has launched an initiative on a voluntary basis, but considers it necessary to be able to count on the participation “of the major issuers”, Spanish Economy Minister Carlos Cuerpo said on Thursday.
“We are convinced that Member States will understand the benefits of reducing fragmentation and better integration. This debate no longer has anything to do with the one 10 years ago on ‘eurobonds’: today, it is about improving the efficiency of debt issuance and taking a further step in reducing market fragmentation”, he stressed.
For its part, the European Commission’s Commissioner for Economy, Valdis Dombrovskis, recalled on Thursday evening that “several programmes would rely on new debt issuance to fund loans to both EU Member States and partner countries” in the European Commission’s proposal for the EU’s long-term budget. The latter “remains open for EU’s broader discussion on EU safe assets”, Mr Dombrovskis said. (Original version in French by Bernard Denuit)