07/14/2021 – A year ago, the 27 EU countries agreed on a € 750 billion reconstruction fund to overcome the Corona-related economic crisis. This program marks a turning point in the history of the EU, as it involves the communitization of debt and liability, with the EU acting as debtor in its own name. Some countries had previously resisted any kind of so-called Eurobonds, even though in fact joint liability has long been established via the ECB’s various programs amounting to several trillion. The markets assume joint liability, as the EU’s AAA rating makes clear.

Read more in this mon th’s Macroeconomic Comment by Peter von Elten.