Germany and Netherlands Reject EU Joint Borrowing Amid Global Challenges

Germany and the Netherlands oppose EU joint borrowing even as global challenges mount. Finance ministers from both countries expressed their reservations at a G20 meeting, arguing favoring individual fiscal responsibility over collective debt. They stressed EU should address financial issues differently, emphasizing past joint decisions were temporary measures.

Germany and the Netherlands are firmly opposing the European Union's calls for joint borrowing as global economic challenges continue to loom. This stance was reiterated by finance ministers from the two nations during the sidelines of a G20 meeting in Durban, South Africa.

Dutch Finance Minister Eelco Heinen explicitly stated to Reuters that the Netherlands has historically been against joint borrowing and maintains that perspective today. There is a division within the bloc, with some members advocating for shared debt to support large-scale spending plans initiated by the European Commission.

The concept of joint borrowing was initially adopted to help member countries recover from the coronavirus-induced economic repercussions. However, Germany and the Netherlands, along with Denmark and Finland, have consistently opposed this model, perceiving it as a financial burden on fiscally disciplined nations to support less disciplined southern members.

(With inputs from agencies.)