Germany restates opposition to eurobonds [BBC]
May 22, 2012 Leave a comment
Germany has again stated its opposition to so-called eurobonds as the new French finance minister met his German counterpart for the first time.
Eurobonds are a proposal to issue debt on behalf of all 17 euro countries.
But a German minister said they would be the “wrong prescription at the wrong time”.
Pierre Moscovici met German Finance Minister Wolfgang Schaeuble in Berlin with both agreeing Greece should stay in the euro.
Mr Moscovici said he had a “constructive” dialogue with Mr Schaeuble and added that Paris will respect its commitments to cut deficit.
In elections earlier this month, the majority of Greeks voted against those parties backing the drastic austerity measures that had been agreed with the EU.
“We have always said that as a first step we need solidity in European finances, and that is the fiscal compact,” said Steffen Kampeter, a deputy finance minister, referring to the budget pact that 25 out of 27 European Union countries agreed to abide.
But that has been put in doubt by the election of French Socialist Francois Hollande, who wants to introduce eurobonds and amend the pact, and stands opposed to the austerity policies pushed by Germany.