The Future Of The Euro

Former Eurogroup official Thomas Wieser discusses the potential for debt mutualisation

27 Mar 2020

ESM credit lines remain the key instrument for the corona crisis as they will allow the ECB to keep backstopping the system in a politically palatable way, says Thomas Wieser, former President of the Eurogroup Working Group. In his view, the Northern countries are doing themselves no favours by blocking generous ESM solutions, as the alternative down the road may be politically much more difficult, outright fiscal transfers. In our conversation we talk about the meaning of coronabonds, the job of the ECB so far, procrastination in creditor countries and overly aspirational ideas postponing good decisions.

Thomas Wieser spoke to Beat Siegenthaler of the UBS Knowledge Network from Vienna on 27 March.

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