Jens Weidmann is critical of the acceptance of joint debts by the EU countries to deal with the Corona crisis. “In principle, I consider joint debt for extensive transfers to be questionable,” the President of the Deutsche Bundesbank told the newspapers of the Funke media group. “At the very least, the package should not serve as a springboard for large-scale EU debt for regular household financing.”
However, it is important that the EU has proven able to act in the crisis. “Solidarity in Europe – also financial – I think is right in this situation,” said Weidmann. “Control mechanisms are required to ensure that the funds are used sensibly and efficiently.”
At the latest summit, the EU countries had had a hard time agreeing and wrestled for four days and nights. The way for the overall deal was cleared after the so-called frugal states accepted that common debts would be raised and money would go to EU states as a grant. In return, Germany, France, Italy and Spain agreed to reduce the total of these grants from € 500 billion to € 390 billion.