Sunday, 27 May 2012

European project bonds

The Danish presidency of the EU does seem to have fulfilled the "mission statement" of prime minister Helle Thorning-Schmidt, to combine economic responsibility with growth.  Denmark is claiming a result in obtaining agreement to a pilot project of European project bonds. It is difficult to cut through the bureaucratic language of the official announcement. It appears that the project will make money available for enterprises which will be profitable, but not in the short term which appeals to the commercial market.

This is a welcome weapon in the fight against economic stagnation. The concern is how quickly it can be brought to bear; it's clearly something that was needed from 2009 onwards.

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