Key facts
- ECB President Christine Lagarde supports a debate on joint EU borrowing.
- Lagarde stated the EU requires a European asset comparable to US Treasury bonds.
- Spain has proposed an annual joint borrowing plan of €850 billion.
- Lagarde denied being a candidate for any political role, particularly the French presidency.
- Speculation suggests Lagarde might leave the ECB to engage in French election campaigns.
- The EU previously issued €750 billion in joint debt for its post-pandemic recovery fund.
European Central Bank President Christine Lagarde has expressed support for a debate on joint European Union borrowing, a concept championed by Spain. In an interview with Euronews, Lagarde stated that it is 'pretty obvious' the EU needs a safe and liquid European asset that can rival US Treasury bonds and fund common priorities. She welcomed Spain's proposal for common borrowing worth €850 billion annually, presented by Economy Minister Carlos Cuerpo, describing it as a starting point for discussion. Lagarde also addressed speculation about her potential candidacy in upcoming French elections, firmly stating she is 'not a candidate for anything' but is keen for Europe to be protected and for France to remain a key member. She expressed hope that reason will prevail in the French election and acknowledged the significance of the upcoming vote, particularly the potential for a run-off between Marine Le Pen and Jean-Luc Mélenchon, who represent parties seen as outside the pro-EU consensus. Lagarde drew parallels to the EU's successful issuance of €750 billion in joint debt for the post-pandemic recovery fund, noting its oversubscription and the importance of deep liquidity in European capital markets.