Tycoon George Soros urged yesterday urged the European Union (EU) to issue “perpetual bonds” to deal with the economic crisis caused by the pandemic. These are public debt bonds known in the United Kingdom and the United States, and in which only the payment of interest is required, with no date to return the principal. The Spanish government has defended its use to finance the recovery of the euro zone.
The billionaire of Hungarian origin and American nationality, famous for his speculative maneuvers and also for his philanthropic work, warned that the damage that the coronavirus will cause in the eurozone will last “longer than most believe”, because the virus is ” evolving rapidly (…), and this would make it much more difficult to develop a reliable vaccine. “
Soros suggests that Brussels should resort to “perpetual bonds” because these issues “do not have to be paid” and only carry the “mutual obligation to pay an annual interest, which is negligible.” In their opinion, they could be issued in tranches and would be bought by long-term investors, “he argues.
Soros regrets that his proposal “has been confused with the Coronabonos, which in his opinion” have been rightly rejected decisively (by the countries of Northern Europe), since they require a degree of mutualisation that is simply unacceptable “.