Germany sees no need for additional European Union debt obligations to overcome the energy crisis of the bloc reports that Berlin will change its position and support the joint issue of EU debt through loans.

According to a German government spokesman, financing for the energy crisis and the green transition could be financed through the EU's Next Generation fund, which was created to support the bloc's recovery during the coronavirus pandemic. Only one-fifth of the approved available funds have been paid out, and the remainder could be used to address crises and fund the energy transition.

To this end, it is now necessary to quickly reach an agreement with the European Parliament to be able to use these funds promptly, the spokesman added.

A government source previously told Reuters that Berlin has no plans to support a joint EU debt issue. Germany's Economic Council has criticized the EU plan, calling it irresponsible in light of current inflation rates.

Citing sources, Bloomberg wrote that Germany would change its stance and support joint EU debt issuance through loans, which would raise German government bond yields.

German Chancellor Olaf Scholz suggested at last Friday's informal EU summit that unused funds from the European Recovery Fund, created during the coronavirus pandemic, be used to fight the energy crisis.