Donald Trump and Eurobonds: How the US President Is Making Joint Debt More Attractive

Eurobonds have long been treated by German conservatives as a dangerous idea. Chancellor Friedrich Merz is among those who see jointly issued European debt as unacceptable policy. Yet the debate is changing, with support now emerging from economists who traditionally favor more liberal approaches to economic policy.

The change is tied in part to Donald Trump’s impact on the international monetary system. His presidency is weakening confidence in the dollar as the leading global currency, according to the article’s framing. That has made common European borrowing appear more attractive to economists who once viewed it with skepticism.

The discussion reflects a broader question for the European Union: whether member states should take on more debt together rather than rely solely on national borrowing. The growing appeal of Eurobonds does not mean opposition has disappeared, particularly among conservative politicians in Germany.

Instead, Trump’s approach to the dollar has altered the assumptions behind the argument. A policy once dismissed as “toxic” is gaining attention as Europe considers how to respond to a less dependable role for the US currency.