Eurozone News
LAST UPDATE: June 17, 2025
Luxembourg PM Backs Calls for Joint EU Debt for Defense, Climate
Bloomberg
Prime Minister Luc Frieden expressed support for issuing joint EU debt instruments to finance defense and climate initiatives. He argued that collective borrowing is necessary because “no country can do this alone.”
Insight
Frieden’s comments mark a notable shift toward fiscal integration in the EU, breaking from tradition by endorsing shared debt for strategic projects. This approach could lay the groundwork for deeper financial solidarity—but may also face resistance from more fiscally conservative member states.
EU bank pledges 1.6 b euros for France‑Spain power link
The European Investment Bank will support a new subsea power interconnector under the Bay of Biscay with a €1.6 billion investment. Slated for completion in 2028, it will double electricity transfer capacity between France and Spain from 2.8 GW to 5 GW.
Insight
This strategic investment addresses Iberia’s energy isolation exposed by an April blackout. It strengthens regional energy integration, promotes grid resilience, and supports the EU’s green transition goals.
