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Opinion
Melvyn Krauss

Coronabonds Are Inevitable. Everybody Knows It

The protests of the Germans and Dutch against mutualized euro-zone financing should be taken with a large dose of salt.

Our mutual friends.

Our mutual friends.

Photographer: VINCENZO PINTO/AFP

The European Central Bank has just taken a giant step toward converting its emergency aid package of 750 billion euros ($824 billion) — dubbed the Pandemic Emergency Purchase Program — into a true no-limits bond-buying vehicle by relaxing the “issue limits” it imposes on its debt purchases related to Covid-19.

Previously, the ECB couldn’t buy more than one-third of a country’s eligible debt.