EU commissioner invites Indian investors to buy Euro bonds, hopeful on FTA

The European Union is keen that Indian investors invest in Eurobonds, and for that, the EU commissioner for Budget and Administration, Johannes Hahn, is currently in India.

Speaking to our correspondent Sidhant Sibal, the commissioner (minister), explained, "Our intention is, and that's why I'm here, that investors from India engage themselves in Europe, to get an attractive bond. Which is safe, triple A rated, which is sustainable, which is successful."The commissioner will be in Delhiand Mumbai, and will meet top Indian governmentofficials and ministers.

As part of Euro bonds, the focus is also on EU Green Bonds, which are designed to raise funds for environmentally friendly projects within the European Union.

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The commissioner pointed out, "We have committed ourselves to spend at least 30 per centof our budget for the green transition, and this is the reason why we have so far issued 65 billion euros as green bonds."He also spoke on India-EU FTA and the current situation in west Asia. Full interview

WION: What is the key focus during India visit?

Commissioner Johannes Hahn: First and most prominent one is to further strengthen our already very strong ties between India and Europe, and in particular, to promote our European Union bonds, a new instrument to finance the recovery and resilience of the European economy after the pandemic. So far, we have raised more than 500 billion euros, and out of this, 65 for so-called Green bonds. And our intention is, and that's why I'm here, that investors from India engage themselves in Europe, to get an attractive bond. Which is safe, triple A rated, which is sustainable, which is successful, and at the same time supporting Europe in the way that Europe can be even more engaged in India and in general, it's about the European single market, where India has a very strong interest. India-Europe, we are the strongest trade partners.

WION: Sir, you mentioned euro bonds. If you can elaborate on euro bonds, why should an Indian investor look towards Euro bonds as a place to invest?

Commissioner Johannes Hahn: Well, if it's about bonds, what we can offer is a bond which is very safe, triple rated, guaranteed, not only by the European budget, but also by the European member states. It's therefore extremely safe. It's sustainable because we focus also on the green transition. So it's about addressing the effects of climate change, which is our common goal, India and Europe. And finally, if you are interested in diversifying your portfolio, to have bonds in your portfolio being dominated in Euro, it's additionally an element which should be taken into consideration.

WION: So element of the Euro bond is the green bond, if you can talk about your ambition on the green bonds.

Commissioner Johannes Hahn: Well, as I said, green transition is and the financing of the effects of climate change, to be more clean, to be more sustainable, is one of our top priorities of the current European commissioners, also the future one, and that's why we have committed ourselves to spend at least 30% of our budget for the green transition, and this is the reason why we have so far issued 65 billion euro as green bonds, and finally, it will be around 200 billion. And with that, we are financing green projects in Europe, we have introduced a very transparent, very easily understandable, very updated dashboard where you can see for which purposes the money is used.

WION: In terms of helping India in terms of green transition. If you can talk about that, India has its own ambitions when it comes to green transition, we have been an important player when it comes to initiatives like the International Solar Alliance...

Commissioner Johannes Hahn: Well, we share the same goals. And I believe, by the way, that Europe and India could be in the forefront of the discussions between the West and the South, because at the end, it's about common challenges. And I think common ideas which have to be implemented in projects. And this is why, for instance, we have provided, only recently, a big round of 1 billion euro for the production of green hydrogen here in India. This is a kind of seed financing, and once this is up and running, it can be rolled out, and it could be a very attractive business case. We are also investing in Smart City solutions, where, due to the use of digital devices, IT programmes, artificial intelligence, for instance, we can reduce CO2 emissions. We have also invested in water management, water treatment, and these are areas where we believe India is very interested, and the response is a very positive one. And for instance, also big cities, metros, trains.

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WION: Your assessment of India-EU FTA?

Commissioner Johannes Hahn: I don't have the crystal ball. All these negotiations are always comprehensive. It takes time, everybody has specific interests, but I'm confident we have a lot of experiences. India has a lot of experience in this kind of agreements, and I'm very confident. Also, Prime Minister Modi has expressed that we should re-energize the negotiations. And the thing it's time wise, a good coincidence that in India, but also in Europe, a new cycle, new parliamentary cycle, which gives us the leeway to negotiate substantially, profoundly, and I'm confident at the end of the day, we will have a very comprehensive FTA, an ambitious one, because at the end it's something where two big economies working closely together to the mutual benefit of all our citizens.

WION: EU's position on the situation in West Asia?

Commissioner Johannes Hahn: First, it's our neighborhood. So we are extremely concerned, and that's why we urge all parties to refrain from further escalations, to move towards the ceasefire. And of course, it's also about releasing hostages.