Michael Hüther: „Dürfen nicht die Scheuklappen aufsetzen, sobald der Begriff Euro-Bonds fällt“

Michael Hüther, Director of the German Institute for Economic Research, warns against dismissing the concept of Euro-bonds too quickly. He argues that a common European debt could lower financing costs for the entire monetary union in the long term, while also providing geopolitical benefit. Despite Germany's skepticism towards common European debts, Hüther insists that Europe must start thinking about defense and currency policy together.

The US intervention in currency and bond markets is causing unease, with the dollar's dominance questioned. Nevertheless, the dollar is unlikely to lose its significance overnight, but changing conditions make the Euro a viable option for a global lead currency. For this to happen, Europe needs to create the functional prerequisites for a leading currency.

The Euro, a currency that extends far beyond the former D-Mark area, has proven to be just as credible as the Deutsche Bundesbank and has survived several crises. However, if Europe wants to have a strong voice geopolitically, it must develop the Euro into a global currency. This would strengthen economic sovereignty, reduce transaction costs, and allow the Euro to serve as a reserve currency, a medium of exchange, and an investment instrument.

The Euro would need to be accepted as a store of value by central banks, and investors would need sufficient safe assets available. Although Germany would be liable for other EU countries' debts in a common euro bond, this can be mitigated by a long-term process over ten to fifteen years, with a European investment union focused on specific projects like cross-border infrastructure, energy, digitalization, or defense.