What are ‘coronabonds’?

Reuters

2020.4.21

(00:00-01:22)

This is expected to be the EU’s deepest ever recession. But how could ‘coronabonds’ get the economy back on its feet? And what exactly are they? The idea is to issue joint debt for euro zone member states. That means the interest rate would be lower for many members than if they borrowed alone. Nine of the 19 countries that share the euro have called for such a solution. These include Spain, Greece, and Italy. “A fund that must be financed with a real economic sharing of the effort, such as with Eurobonds. Yes, the Eurobonds, the famous Eurobonds.” But other, richer countries in northern Europe, such as the ‘Frugal Four’, Germany, Netherlands, Austria, and Finland are not so keen to pool liabilities with what they see as more spendthrift countries in southern Europe. It’s highly controversial issue that has been discussed before. Proposed by Italy during the global financial crisis in 2009, and again by France and Italy in 2012 at the peak of the euro zone’s sovereign debt crisis. But was dismissed by Berlin and its allies then… and now.

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https://youtu.be/_XHUyGBzcGA