FXStreet reports that in the opinion of Patrick Artus from Natixis, mutualising the financing of economic recovery and strategic onshoring for the entire euro zone after the coronavirus crisis is obviously a good idea.

“Mutualisation would make it possible to finance persistently large fiscal deficits without any risk of a debt crisis, and would send a positive political signal.”

“For such mutualisation to be accepted by all countries, very rigorous governance and project selection will be required.”

“The bond market's capacity to absorb even euro-zone debt is not unlimited. Long-term interest rates were rising even in the core euro-zone countries prior to the announcement of the ECB’s interventions, due to expectations of large fiscal deficits.”