Germany staunch in opposition to eurobonds

Juergen Baetz - The Associated Press

BERLIN (AP) — Germany is making clear ahead of a European Union summit that Chancellor Angela Merkel's government remains staunchly opposed to the idea of jointly issued bonds for the 17-nation eurozone.

At Wednesday's informal meeting of the EU's 27 leaders in Brussels, newly elected French President Francois Hollande is expected to push for so-called eurobonds, which can be used to fund investments or boost banks' capital reserves.

But Germany argues they would lessen the pressure on heavily indebted countries such as Greece or Italy to get their finances in order and likely raise borrowing costs for countries in better shape, such as Germany, Europe's biggest economy.

• Already a subscriber?
  Sign in to read full article.
• Not a subscriber?
  Subscribe now and get full access!

May 22, 2012