Skip to content

Energy Crisis Debate Clips the Wings of Europe’s Fiscal Hawks

  • European Commission renews calls for a level playing field
  • Germany has indicated support for joint debt for loans

Is the once unthinkable about to become the European Union’s new normal?

When EU leaders meet in Brussels Thursday to try to solve an energy crisis that threatens the livelihood and security of its 500 million citizens, they’ll look to lessons learned during the Covid-19 pandemic. Among them is the bloc’s decision to break one of its biggest taboos by mutualizing debt in a massive transfer of wealth from the EU’s wealthiest countries to those most in need.