ECB's Lagarde open to debating Spain's joint EU borrowing plan
European Central Bank President Christine Lagarde told Euronews in an exclusive interview that Spain's proposal for joint EU borrowing deserves serious debate. Lagarde said it is "pretty obvious" Europe needs a common safe asset that markets can view as liquid and able to compete with the US.
European Central Bank President Christine Lagarde discussed Spain's proposal for joint European Union borrowing in an exclusive interview with Euronews, saying the idea deserves a serious debate. "Let's debate it," Lagarde said when asked about the plan.
Lagarde said it is "pretty obvious we need to have a European asset" that markets can view as safe and liquid, and one capable of competing with US Treasury bonds. Her remarks were widely read as lending some support to Madrid's push to expand joint EU borrowing mechanisms.
The idea of common EU debt has long been one of the bloc's most sensitive fiscal questions, central to debates over deepening European fiscal integration. Countries that prioritize fiscal discipline, including Germany, have historically approached such proposals with caution, and Lagarde's comments could reignite that debate.
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