European Union Seeks New Wave of Joint Bonds to Boost Defence
The European Union is sensing that a fresh joint European borrowing effort is becoming more likely as the region scrambles to ramp up defence spending. Companies are calmer about the potential funding surge than they would have been in the past, indicating that investors view increased borrowing as manageable so far. The growth impact of defence spending will be critical for Europe's economy.
- The EU's reliance on joint borrowing to boost its defence budget may signal a shift towards a more integrated and coordinated approach to fiscal policy, which could have significant implications for the bloc's economic stability.
- How will the widespread adoption of joint European bonds affect the long-term sustainability of public finances in smaller member states, many of which are already struggling with high debt levels?