EU Considers Joint Debt

The debate over issuing new joint debt to enhance the EU’s competitiveness remains divisive among political leaders. European Council President Charles Michel stated that “everything is on the table,” including fresh common debt, as a means to address the EU’s sluggish competitiveness and narrow the widening gap with the US and China.

EU leaders met in Budapest to discuss the issue, focusing on a report by Mario Draghi, which highlighted the EU’s economic struggles and proposed bold measures to address them. Draghi’s report suggests the EU needs an additional €800 billion in investments annually to stay competitive globally and recommends issuing joint debt, as done during the COVID-19 pandemic, to achieve this target. Michel praised the report as a solid foundation for discussion and emphasized that joint debt should not be dismissed outright, despite its controversial nature.
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