In an interview with Politico, our policy expert Thu Nguyen gives a first assessment of what the court’s decision clearing way for the €750 billion recovery fund could imply for similar projects in the future.
While the German Constitutional Court ruled that the common debt issuance - the first of its kind in the EU - was legitimate, it said that it ”would be manifestly impermissible for the European Union to borrow on capital markets to provide general financing for its budget.”
On first reading, the decision is “not a positive sign for future fiscal integration," comments Thu Nguyen. "The court seems extremely skeptical, essentially arguing all along that the program is legally very problematic, only to then conclude that it will not block it."
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