{"id":59252,"date":"2021-09-10T06:36:21","date_gmt":"2021-09-10T11:36:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59252"},"modified":"2021-09-10T06:36:21","modified_gmt":"2021-09-10T11:36:21","slug":"eu-to-propose-exempting-green-bonds-from-deficit-and-debt-limit-calculations","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59252","title":{"rendered":"EU To Propose Exempting &#8220;Green&#8221; Bonds From Deficit And Debt Limit Calculations"},"content":{"rendered":"<header class=\"ArticleFull_header__11o5_\">\n<h3 class=\"ArticleFull_title__2cUI6\"><a href=\"https:\/\/www.zerohedge.com\/economics\/eu-propose-exempting-green-bonds-deficit-and-debt-limit-calculations\">EU To Propose Exempting &#8220;Green&#8221; Bonds From Deficit And Debt Limit Calculations<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__38L44\">\n<div class=\"NodeContent_body__2clki NodeBody_container__1M6aJ\">\n<p>Yesterday, the\u00a0<a href=\"https:\/\/www.zerohedge.com\/markets\/ecb-tapers-pepp-bond-purchases-moderatly-lower-pace\">ECB announced that in Q4,\u00a0<\/a>it would &#8220;<em>modestly lower the pace of net asset purchases under the PEPP than in the previous two quarters<\/em>&#8221; (even as Lagarde scrambled to convince markets\u00a0<strong>not to\u00a0<a href=\"https:\/\/www.reuters.com\/business\/finance\/ecb-may-dial-back-support-wont-take-it-away-just-yet-2021-09-08\/\">call it tapering<\/a><\/strong>) with\u00a0<a href=\"https:\/\/www.reuters.com\/business\/finance\/ecb-may-dial-back-support-wont-take-it-away-just-yet-2021-09-08\/\">Reuters sources\u00a0<\/a>adding that &#8220;policymakers set a\u00a0<strong>monthly target of between 60 billion and 70 billion euros&#8221;\u00a0<\/strong>down from 80 billion currently &#8220;<em>with flexibility to buy more or less, depending on market conditions.&#8221;\u00a0<\/em>Putting this\u00a0<em>non-taper taper\u00a0<\/em>in context, Nomura calculated that &#8220;<em>even if net PEPP is scaled down to \u20ac60bn\/month the ECB would still buy 85% of the remaining gross supply, strongly supporting EUR rates<\/em>.&#8221;<\/p>\n<p>Despite the shrinkage of ECB bond-buying, Lagarde made it clear that the fiscal spice must flow:<\/p>\n<ul>\n<li>*LAGARDE: FISCAL SUPPORT HAS TO BE CONTINUED<\/li>\n<li>*LAGARDE: FISCAL SUPPORT NEEDS TO BE MORE TARGETED<\/li>\n<\/ul>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\" data-google-query-id=\"CKT-r7-m9PICFUmynwodACoP8w\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\">And to facilitate just that despite periodic loud if mostly theatrical objections from conservative &#8220;Northern&#8221; European nations, on Friday European Union finance ministers will begin discussing on Friday how to change their budget rules to deal with a huge rise in government debt during the coronavirus pandemic and how to encourage spending needed to arrest climate change.<\/div>\n<\/aside>\n<\/div>\n<p>The most notable proposal is\u00a0<strong>to exempt &#8220;green&#8221; investments from calculations of deficit and debt limits and temporarily forgetting existing rules that say debt must be cut every year,\u00a0<\/strong><a href=\"https:\/\/www.reuters.com\/business\/sustainable-business\/eu-mull-changes-budget-rules-debt-green-investment-focus-2021-09-08\/\">Reuters reported\u00a0<\/a>citing documents prepared for the ministers&#8217; talks showed.<\/p>\n<blockquote><p>&#8220;The challenge in coming years will be to consolidate deficits while increasing green investments to achieve the ambitious targets of the EU to cut emissions or any other investments,&#8221; a note prepared by host Slovenia said.<\/p><\/blockquote>\n<p>In other words,\u00a0<strong>the EU will use the &#8220;green&#8221; strawman of fighting climate change as a loophole to issue debt over and above the EU&#8217;s self-imposed ceilings.<\/strong><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>EU To Propose Exempting &#8220;Green&#8221; Bonds From Deficit And Debt Limit Calculations Yesterday, the\u00a0ECB announced that in Q4,\u00a0it would &#8220;modestly lower the pace of net asset purchases under the PEPP than in the previous two quarters&#8221; (even as Lagarde scrambled to convince markets\u00a0not to\u00a0call it tapering) with\u00a0Reuters sources\u00a0adding that &#8220;policymakers set a\u00a0monthly target of between [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,4],"tags":[6177,233,279,282,284,1405,661,662,683,4318],"class_list":["post-59252","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-environment","tag-christine-lagarde","tag-ecb","tag-eu","tag-european-central-bank","tag-european-union","tag-green-bonds","tag-qe","tag-quantitative-easing","tag-reuters","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59252"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59252\/revisions"}],"predecessor-version":[{"id":59253,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59252\/revisions\/59253"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}