We propose the possibility (if the European Assembly so decides) of a pooling of the refinancing of States for all or part of their debts (article 10 of the TDEM). This proposal is based on the “Public Debt Redemption Fund” proposed in 2012 by the German Chancellery’s economist council, except that it is a democratic body (the European Assembly), and not an automatic rule, which will decide the rhythm of repayment. Each country would continue to repay its own debt but at an interest rate which is the same for all. We would thus avoid a crisis in the spreads like the one which occurred and would institute a new point of reference which is more satisfactory than that of the market.
we should stress however that the TDEM proposal is built for the most part around the idea of fiscal justice, and the possibility for à European Assembly that can adopt common taxes to finance a democratization budget. The questions of debt and money also play a role in the TDEM, but these parts of the proposal would need to be strengthened. Generally speaking, our objective is not to close the discussion but to open it on a precise basis, so that everyone can participate and amend and improve our proposal.
This post was written by admTDEM