A comprehensive debt reduction strategy in the Eurozone could be structured as follows:

  1. Historical Perspective on Debt: As David Graeber outlines in his book “Debt: The First 5000 Years”, debt has played a significant role in societies throughout history. It has been used as a tool for state-building, controlling others, and limiting their actions. Understanding this historical context is crucial for formulating an effective debt reduction strategy.
  2. Legislative Requirements: The Eurozone needs to implement legislative reforms that promote fiscal responsibility and debt reduction. This could include laws that limit the amount of debt that member countries can take on and regulations that encourage transparency in public finances.
  3. Fiscal Governance: Drawing from Professor Benjamin Cohen’s 2007 RIPE piece, strengthening the fiscal governance framework of the EU is crucial. This involves improving the efficiency and effectiveness of public spending, enhancing the transparency and accountability of fiscal policies, and ensuring that fiscal rules are adhered to.
  4. Capital Markets Union: The creation of a Capital Markets Union can help diversify funding sources, improve the stability of the financial system, and facilitate the flow of capital across the Eurozone.
  5. Liberalisation of the Retail Market: Liberalising the retail market in the EU can stimulate competition, lower prices, and improve the quality of goods and services. This can boost consumer spending, which in turn can help reduce debt levels.
  6. Harmonisation of Debt Issuance Calendars: Ahead of the next big bang enlargement in 2030, harmonising debt issuance calendars across the Eurozone can help synchronise fiscal policies and promote financial stability.
  7. Policy-Related Aspects: Policies should be implemented to promote economic growth, reduce unemployment, and increase productivity. These can include structural reforms, investment in infrastructure and education, and policies that promote research and development.
  8. Institutional Requirements: Institutions play a crucial role in debt reduction. They need to be strong enough to enforce fiscal rules, monitor debt levels, and implement necessary reforms.
  9. Franco-German Structured Rivalry and Supranational Leadership: The enduring Franco-German rivalry has shaped the EU. However, the failure of supranational leadership to take smooth and forceful action has often hindered progress. Overcoming this rivalry and strengthening supranational leadership is crucial for the successful implementation of a debt reduction strategy.

In conclusion, debt plays a significant role in state-building. It is a resource that, when managed properly, can contribute to the development and prosperity of a nation. However, when mismanaged, it can lead to economic instability and hardship. Therefore, a comprehensive and effective debt reduction strategy is essential for the economic health and stability of the Eurozone.

Given the complexity and diversity of the Eurozone, it’s challenging to provide detailed country-by-country recommendations on institution-building, policy development, and legislation. However, I can provide some general guidelines that could be tailored to each country’s specific context:

  1. Institution-Building: Institutions play a crucial role in managing debt and implementing fiscal policies. Countries should focus on strengthening their institutions, particularly those related to fiscal management. This could involve enhancing the capacity of these institutions, improving their governance structures, and ensuring their independence.
  2. Policy Development: Policies should be designed to promote economic growth, reduce unemployment, and increase productivity. This could involve structural reforms, investment in infrastructure and education, and policies that promote research and development.
  3. Legislation: Legislative reforms that promote fiscal responsibility and debt reduction should be implemented. This could include laws that limit the amount of debt that member countries can take on and regulations that encourage transparency in public finances.

As for the optimal level of debt, it’s important to note that there’s no one-size-fits-all answer. The optimal level of debt can vary depending on a country’s specific economic conditions and fiscal capacity. However, the EU treaties have enshrined an upper limit to the debts of member states relative to their economic output. Their debt-to-GDP ratio should not exceed 60%. At the end of 2022, the EU general government gross debt decreased to 84.0 % of GDP.

Regarding the introduction of an EU-tax, the European Commission has adopted a Tax Package that aims to make taxation fairer, simpler, and more adapted to modern technologies. The proposal, called “Business in Europe: Framework for Income Taxation” (BEFIT), will introduce a new, single set of rules to determine the tax base of groups of companies. This is part of the EU’s broader efforts to forge a stronger fiscal-military actor at the heart of Eurasia

Please note that these are general recommendations and each country within the Eurozone may need to tailor these guidelines to their specific context and needs. It’s also important to keep in mind that any changes to fiscal policies or debt levels should be done in consultation with relevant stakeholders and in accordance with EU regulations and guidelines.


The reduction of debt in the eurozone ahead of stage 4 – the harmonization of debt issuance calendars – are likely timed to coincide with structural change in the international system and to consolidate the movement of the EU towards a tightly integrated fiscal-military actor. That is it implies a theory of change in the polarity of the international system linked to state-building processes in Europe.

Given views are converging on the finalité politique of the Eu integration project and Professor Cohen’s piece has been out now for 17 years, it follows it is presupposed by the prolongation of the Franco-German tandem’s sway over high politics in the European Union. This, by far, doesn’t imply the Eu institutions should not try and even out differences and should nor report to duty when called on or when into the mood for co-creation of the remunarated version, bien-sur.,-

For some time, the ECB has been clamoring for advancing the capital market union given  its concern for balance sheet recession following the debt crisis, the return to growth in the European economy and the interest in promoting the EU’s open strategic autonomy.

This signals a need for how to tie in a debt reduction strategy during UVLII and how to proceed on the different stages of BJC’s rocket towards 2030. At this point, France and Germany has decided to move forward on harmonization of the debt issuance calendars in the Eurozone, only.

Clearly, there is a need for consultations with Professor Cohen on what he had in mind, how to strengthen tax governance in EU and the Member States,  the purposes an EU tax could be used for based on pilot projects within budget and time likely at regional level, and the format of and content of the legislative framework underpinning the Eurozone debt reduction strategy in the run-up to 2030.

Two possibilities:

The institutional track: The ECB’s preference for preventing balance sheet recession and promoting the EU’s open strategic actor-hood is sized for conducting a review of the Capital Markets Union Action Plan. Parallel to this, an administrative reorganization is undertaken in EEAS, whereby the SP Unit on strategies, an SP-Unit on thematic issues, and action plans in the Eu delegation are implemented, while the EU Commission publicizes a strategy for debt reduction in the €urozone.

The Berlin-Brussels-Paris Track: A strategy on debt reduction in the €urozone will be published to coincide with consensus on implementing the CMU Action Plan on outstanding issues following EP elections in conjunction with the Draghi report on competitiveness.














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