Berlin denied sources who told Bloomberg that the German chancellor Olaf Soltz it can turn 180 degrees on a sensitive, divisive issue where German negation is a constant refrain. Sources with knowledge of the matter were cited as the reason for the report, who said Mr. Scholz could change Germany’s stubborn refusal to issue joint debt to finance measures to overcome the energy crisis. Citing sources in the German government, Reuters states that Berlin denies any such possibility and does not intend to support joint debt issuance.

An earlier Bloomberg report cited sources with knowledge of the matter, who spoke, however, of private statements by the German chancellor on the sidelines of the meeting, and not of his official speech at the meeting in Prague. These sources even emphasized that Mr. Soltz had declared himself open to Eurobond issue, but on the condition that the funds be distributed among its member states in the form of loans and not in the form of subsidies. He even explained that the change in attitude followed the aggressive criticism Europe’s largest economy received for a €200 billion loan it decided to support households and businesses amid the crisis. energy crisis. He also stressed that there has been increasing calls and pressure recently for issuing common debt as there are concerns about the significant spending it will take to get the EU through this winter without Russian gas. And only leaks about the relevant statements of the German chancellor, however, were enough yesterday to lead to the growth of Italian government bonds, the spreads for which fell 12 basis points below 2.4 percentage points.

Leaks of information about the change in attitude of the German Chancellor to Eurobonds yesterday were enough to lead to the growth of Italian government bonds.

According to Bloomberg, the same sources, who asked not to be named, claimed that the SURE program against the recession of the pandemic has provided jobs by providing 100 billion euros in loans. The details of such a new program have not been determined, but it is likely to be smaller in scope than the €724 billion pandemic program. It should be noted that the architect of this program was, in part, Olaf Scholz, who at that time held the post of German finance minister. The creation of this particular program was the first step for the EU. and those who supported it insisted that it would be unique and would not be repeated. After all, Bloomberg quoted the reaction of a representative of the German government, who evaded a direct position and was satisfied with the statement that there were still quite a lot of funds left from the anti-pandemic program that had not been allocated.

In addition, the publication in question emphasizes that in Prague, Solz refrained from giving a specific answer to a public question whether Germany would support a new round of joint debt to overcome the crisis. As he emphasized, instead he preferred to emphasize that there are still loans and guarantees from the Recovery Fund that have not been allocated, and “therefore, there are enough resources.” As one of the sources commented, the German Chancellor is avoiding giving the go-ahead to the creation of a new debt financing instrument because he wants to take into account the decision of the German Constitutional Court on the constitutionality of the Recovery Fund. . In a preliminary assessment last April, the judges of the Constitutional Court ruled that the damage that would be caused if the necessary funds were not made available to fight the pandemic recession would be much greater than the potential damage from borrowing the Recovery Fund. They also added that the issue is the EU’s total debt. the financing of subsidies to Member States during a state of emergency can be considered constitutional, provided, however, that the measure is taken only once. After all, another reason Soltz is being particularly wary is uncertainty about a new government expected to be led by far-right Georgia Meloni, who has said she will rule as a moderate politician but claims that Italy’s program will require changes. to which he secured his funding from the Recovery Fund. According to the same sources who spoke to Bloomberg, the German chancellor first wants to see the new government in Rome and discuss issues related to European integration with Meloni before deciding whether and how the extradition should be carried out.