Small font size A Larger text size A Largest text size A

Joint EU debt could finance public goods, ECB's Schnabel says

BY Reuters | ECONOMIC | 10:07 AM EDT

WASHINGTON, April 16 (Reuters) - Europe should renew a dormant discussion about joint debt issuance and should consider financing 'public goods' via such an instrument, European Central Bank board member Isabel Schnabel said on Thursday.

"The logical way to do this is to say European public goods should be financed at the European level via common debt," Schnabel told a Peterson Institute lecture. "I think that is entirely logical."

However, this would work best if revenues related to spending were also collected at the European level, a step many European governments have long opposed, Schnabel added. (Reporting by Balazs Koranyi; Editing by Toby Chopra)

More Fixed Income News

Fed's Miran may scale back rate-cut outlook again due to 'less favorable' inflation developments BY Reuters |ECONOMIC 12:32 PM EDT
Fed's Miran may scale back rate-cut outlook again due to 'less favorable' inflation developments BY Reuters |ECONOMIC 12:30 PM EDT
AM Best Revises Issuer Credit Rating Outlook to Positive for Halyk Insurance Company JSC BY Business Wire |CORPORATE 12:25 PM EDT
TSX Down 20 Points at Midday With Most Sectors Higher BY MT Newswires |ECONOMIC 12:23 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article