Economy. Economists want to cancel the ECBs public debt


More than 100 economists are launching a call this Friday to cancel the European Central Banks (ECB) public debt to facilitate social and environmental reconstruction after the Covid-19 pandemic.

While national debt has risen sharply to protect households and businesses, 'citizens are dismayed to see that almost 25{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of Europes national debt is now held by their central bank,' these economists point out in a forum for nine European publications, including Le Monde, La Libre Belgique, El Pais (Spain), Der Freitag (Germany) and lAvvenire (Italy).

'We owe 25{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of our debt and when we pay it off well have to find it elsewhere, either by borrowing again to extend the debt instead of borrowing to invest, or by collecting taxes or the cost reduce.' Explain these economists, including fifty French people including Thomas Piketty (Paris Business School), Jézabel Couppey-Soubeyran (Sorbonne), Olivier Passet (Xerfi) or even Aurore Lalucq who is also a member of the European Parliament (socialists and democrats group).

Offer the European states the means for their ecological reconstruction, but also to repair the social, economic and cultural damage

For the ECB, the cancellation of government debt, which is currently trading at very low or even negative interest rates, is 'not an option' as 'citizens could lose confidence in the currency,' Fabio said in June. Panetta, Italian board member.

On the contrary, the undersigned are of the opinion that the Frankfurt-based institution could 'offer European states the means for their ecological reconstruction, but also repair the social, economic and cultural damage' through debt relief. The cancellation of public debt or its conversion into perpetual interest-free debt would be in exchange for a commitment by states to 'invest the same amounts in ecological and social reconstruction'.

2,500 billion euros

'These amounts now amount to almost 2.5 trillion euros across Europe.'

Cancellation not prohibited by contract

The signatories claim that 'repeal is not expressly prohibited by European treaties' and that 'history has repeatedly shown us that legal difficulties disappear before political agreements'.

Concerned about a possible return of the austerity policy, which includes a reduction in national debt, as it was carried out, for example, from 2015 until the beginning of the Covid 19 crisis, the scientists are also calling for 'a new European governance, in particular through the transition to a qualified majority in the tax 'counts'.