Global investors: Eurobonds are needed to finance transitions

In a world increasingly burdened by debts, both public and private, a question arises in the public debate: how to finance the double energy transition, i.e. the ecological and the digital transition? And above all: how to do it in Europe, where public budget constraints are tighter than elsewhere and issuing debt is more complex? An answer to these questions came yesterday from the survey that Aibe (the Italian Association of Foreign Banks) and Censis carried out among an international panel of financial companies, investment funds and multinational enterprises: 53.6% of international investors believe that in order to recover the necessary resources, it is preferable to resort to issuing European public debt. That is, Eurobonds. However, only 35.1% of respondents are in favour of public debt-sharing policies in Europe, while 32.1% suggest greater recourse to public-private partnerships. But the preferred and most popular recipe is that of Eurobonds. Joint government bonds issued to finance the two transitions.

The Aibe-Censis report touches on many topics on economic, geopolitical and social challenges at international, European and Italian level. As far as our country is concerned, the majority of those interviewed underline the importance of the Pnrr (which, after all, is the first embryonic example of a Eurobond). Indeed, 56.1% of international investors emphasise the importance of making good and quick use of the resources coming from Europe.

'The report reveals concern about the implementation of the NRP, both in terms of timing and its ability to generate a significant impact on the economy and society in the long term,' notes Guido Rosa, Aibe president. A more than legitimate concern if we consider that, according to data from the Department for Cohesion Policies, as of 31 December 2023, out of a total of 74 billion European funds granted to Italy (ERDF and ESF+) for the 2021-2027 period, less than 6.5 per cent of projects had been activated and, even worse, only 0.7 per cent of the total had been spent'.

But the report also touches on other topics. For example, the role of the upcoming European elections: only 29.8% of the investors surveyed are optimistic and see the elections as a possible turning point in the construction of the European Union. On the other hand, 42.1% think that the current geopolitical situation (from wars to the energy crisis to technological competition) is weakening and marginalising Europe, forcing it to take second place to the United States, China and the Brics. And, according to them, the elections will not produce great changes.

Finally, a question concerned the factors of influence and instability. And the answers are striking: in first place is the election of Trump (with 61.4% of the vote) and only in second place is the possible victory of the Russians in Ukraine (52.6%).