Perpetual bonds are the answer to the EU’s Covid-19 woes
The union should look to history for a solution to the economic catastrophe and existential crisis it is now facing
Ursula von der Leyen, the European Commission president, has announced that Europe will need about €1 trillion to fight the Covid-19 pandemic. This money could be used to establish a European recovery fund. But where will it come from?
I propose that the EU should raise the money by selling perpetual bonds, on which the principal does not have to be repaid (although they can be repurchased or redeemed at the issuer’s discretion). Authorising this ...