⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Berlin sees no need for further EU debt to ease energy crisis

Published 10/11/2022, 07:00 AM
Updated 10/11/2022, 08:11 AM
© Reuters. FILE PHOTO: General view of empty streets in a business district near the central train station Hauptbahnhof, amid the coronavirus disease (COVID-19) pandemic, during lockdown in Berlin, Germany, January 20, 2021.    REUTERS/Fabrizio Bensch

BERLIN (Reuters) -Germany does not see the need for further European Union debt to tackle the bloc's energy crisis, a government spokesperson said, after a media report said Berlin would change its position and support a joint issuance of EU debt through loans.

Financing the energy crisis and a shift towards green transition could be financed via the EU "Next Generation" fund which was created to support the bloc's recovery during the coronavirus pandemic, the spokesperson said.

Only a fifth of approved available funds has been paid out, and the remainder could be used to tackle crises and finance the energy transition.

"To this end, an agreement must now be reached quickly with the European Parliament in order to be able to use these funds promptly," the spokesperson added.

A government source on Monday told Reuters that Berlin had no plans to back a joint EU debt issuance. Germany's Economic Council criticised the EU plan, calling it irresponsible in light of current inflation levels.

Citing sources, Bloomberg on Monday said Germany will change its position and support a joint issuance of EU debt through loans, pushing German government bonds yields higher.

"Currently we are seeing a worrying flight of capital from the euro area, which will gain further momentum through more and more debt and the resulting weakening of future government budgets," the council's secretary general, Wolfgang Steiger, said on Tuesday.

© Reuters. FILE PHOTO: General view of empty streets in a business district near the central train station Hauptbahnhof, amid the coronavirus disease (COVID-19) pandemic, during lockdown in Berlin, Germany, January 20, 2021.    REUTERS/Fabrizio Bensch

German chancellor Olaf Scholz had suggested at an informal EU summit last Friday using unused funds from the European recovery fund created during the coronavirus pandemic to fight the energy crisis.

($1 = 1.0305 euros)

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.