Germans harden opposition to eurobonds before key summit
GERMANY remains opposed to the introduction of jointly-backed eurobonds to tackle the Eurozone’s sovereign debt crisis, a government spokesman announced yesterday.
New French President Francois Hollande and some other Eurozone leaders are expected to revive proposals for mutualised European debt or eurobonds at an informal EU summit in Brussels tomorrow evening.
By gaining German backing for their debts, weaker governments hope to reduce their borrowing costs and so bring an end to the sovereign debt crisis – without making the painful choices to cut their own spending and reform their economies to seek more sustainable fiscal positions and economic growth.
German Chancellor Angela Merkel has long opposed the idea of bailing out uncompetitive and unreformed states at the expense of her country’s taxpayers – a position which a spokesman insists has not changed despite the increased pressure from other European leaders, including George Osborne.
“Eurobonds are not the tool to overcome the present crisis and our position has not changed,” the spokesman told a news conference.