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Actually, the technical Framework does exist for deficit spending on a federal level. It's the European Investment Bank. It already issues "green bonds" which are outside the Maastricht national borrowing limits.

The scale of debt financing required for a genuine GND is several orders of magnitude greater than what the EIB currently deals in. Let's say 5% of EU GDP annually, for the sake of argument.

The political obstacle is that the EIB's governors are named by the member states.

Changes in policy are normally made using consensus but a double majority vote, based on the size of shares held, could also be an option if there is a clear split of opinion. Germany, France, Italy and the UK are the bank's biggest donors.

Basically, an honest-to-god GND (and not the debased parody being trumpeted by Timmermans and Vestager) would be politically possible if there were a German government which was capable of closing its coal mines. So what would that take? Would a new governing coalition with the Grünen replacing the SPD enable that?

It might, if that government were to be led by Merkel at the height of her powers...

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed Sep 11th, 2019 at 08:58:44 AM EST
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