EU Bailout Fund Chief Says Markets Prefer Joint Debt for Defense

Markets believe that additional outlays for defense are better served by joint European Union borrowing instead of expanding individual countries’ debt load, according to European Stability Mechanism Managing Director Pierre Gramegna.

“The markets are wondering how this additional expenditure will be financed and they see joint European financing as a better tool than increasing debt on national level,” he told reporters in Brussels on Monday. “That would be better cheaper for many countries and it would signal stronger solidarity and risk sharing.”