Bloomberg: EU plan for ‘giant’ Eurobond issue for energy and defense

The European Union (EU) will unveil a plan for a “giant” debt settlement of the 27 to finance its energy and defense independence within a week, following fears of a Russian-led invasion of Ukraine and its general “state”. Putin’s regime, according to Bloomberg.

The proposal is expected to be presented to the leaders of the 27 member states meeting in Versailles, France, on March 10 and 11, according to Bloomberg sources. Officials are still working on the final details of the issue, as well as determining the amount that is expected to be raised.

The spread between the 10-year government bonds of Italy and Germany – which is a key indicator of investment risk for the European continent – fell by 10 basis points to 151, after the publication of the report, while the euro expanded its profits, rising by 0.6 % against the dollar, at $ 1.0920.

The completely unexpected move until a few weeks ago comes just one year after the institutionalization of a package totaling 1.8 trillion. on the basis of common debt, for the recovery of the European economy from the coronavirus pandemic.

“We have to find new tools to deal with the new issues that this crisis is posing to us,” EU Economy Commissioner Paolo Gentiloni told MEPs in Strasbourg on Monday night. He also said that the leaders of the 27 are expected to give political directions for further moves at the March 10-11 meeting.

A spokesman for the commission declined to comment on the details of the plan, but said European officials were aware of the situation and were prepared to respond to emergencies.

The new bond is expected to be issued by the European Commission, which will then distribute the resources to member states in the form of a loan for spending in the two sectors (Energy and Defense), according to Bloomberg sources.

One version is sharing in the form of the SURE program, which was used to fight for the salvation of jobs during the pandemic.