Sergio Cesaratto – Eurobond: Italy’s move to avoid austerity and debt restructuring
Without Eurobonds, Italy risks a debt restructuring accompanied by austerity. The currently planned Recovery Fund is not enough to solve the EU’s problems
Sergio Cesaratto is Professor of Growth and Development Economics and of Monetary and Fiscal Policies in the European Monetary Union, University of Siena. His newest book, “Heterodox Challenges in Economics – Theoretical Issues and the Crisis of the Eurozone” was recently published by Springer Read our review here
Interview by Lorenzo Torrisi
The original Italian version at Il Sussidiario can be read here
Brussels does not seem to be concerned about the stop to the ratification of the Recovery Fund that came from the German Constitutional Court at the end of last week. “We are convinced that the recovery plan will be launched as planned and our goal remains to complete the ratification process by the end of the second quarter of this year,” an EU spokesman said. Almost at the same time as the Karlsruhe judges pronounced their decision, Mario Draghi relaunched Eurobonds at the last European Council. “I know it’s a long road, but we have to get started. It’s a long-term goal, but it’s important to have a political commitment,” said Draghi, who added: “We have to design a framework for fiscal policy that is able to lead us out of the crisis”. Just a coincidence? “Probably not entirely – is the opinion of Sergio Cesaratto, Professor of European Monetary Policy at the University of Siena.
