“Forget about new loans and issue Eurobonds!”

From the “Marshal Plan” to the …“European New Deal”, the very existence of the Eurozone seems to be in need of an “American drug”.

Less than 24hrs after the Eurogroup’s decision to release the next installment, and while the new financial aid is still awaiting a decision, leading European politicians and academics are sounding the alarm about the economic and social cohesion of the European construction and urge political leaders towards a brave decision that will mark the European economy’s exit from the crisis and ensure cohesion among its member states.

According to a pre-publication of a relevant report by the German magazine Der Spiegel, a group of former heads of state and EU governments are requesting, in a letter, a kind of drastic reforms program in the political and economic choices of the EU, in the American «New Deal» standards of the inter-war era.

And the relevant declaration, which according to the magazine came on the initiative of a Greek professor of Economy at the Athens university, Giannis Varoufakis, and the British Labour MP Stewart Holland, is co-signed by former PMs Guy Verhofstadt of Belgium, Giuliano Amato of Italy and Michel Rocard of France, as well as the former Portuguese president Jorge Sampaio.

What they are asking for is a political decision by the EU, which will be financing development projects throughout the Eurozone. In essence, they are requesting the issuing of eurobonds which will collect the debt and also draw capital from the markets “so that Europe will finance economic regeneration rather than keep on imposing austerity measures”.

Former “historic” Commission president Jacques Delors is moving in the same direction but not on the same initiative. This is the first time he is making a public announcement regarding the Eurozone crisis.

Delors initially attacked several European countries that “are insulting the Greeks in an unacceptable manner, while the European Council is equally responsible for their problems”. Then he asked for a decision on the “mutuality of the debt in Europe.” In short, he favours putting “all debts in the same pot for a joint deal with the issuing of two types of eurobonds, blue and red, sound ones and less so. respectively”

Combined with a mix of austerity measures and incentives for growth, this development will lead to a drastic handling of the crisis. Otherwise, says Delors, “our patient will die healthy”…