EU divided over major new debt issuance plan as leaders meet over Russia crisis | City & Business | Finance

Germany has also established a track record of advocating for fiscal tightness.

Melanie Debono, Senior Europe Economist at Pantheon Macroeconomics, said: “Some frugal states are pushing back on the idea of joint debt for the transition away from reliance on Russian energy.

“Covid hit all member states equally, so there was broad-based support for issuing new debt to help with the recovery, this does not.

“And what is also different now is that the countries most exposed to Russian energy, namely Germany, could issue national debt at cheaper rates than the EU would. “

France, which is supportive of the plans, has expressed some caution with President Macron arguing he’d rather focus on goals first rather than the tools to reach them.

He told reporters: “That’s always been my way of doing things.

“It helps lift taboos and blockages.”