Merkel opposes eurobonds
Berlin, August 22, 2011
German Chancellor Angela Merkel on Sunday underlined that she opposes eurobonds, which would pool the 17 eurozone nations' debt, but left the door open to a change in policy at a later date.
She said for the time being, eurobonds would be 'exactly the wrong road to take' because they would lead to a 'debt union instead of more stability'.
'The solution to the current crisis will not be with eurobonds,' she said.
However she added that she did not know 'whether we in the distant future will need to further adapt'.
French President Nicolas Sarkozy and Merkel said at a summit in Paris that eurobonds were not the answer 'today' to the eurozone debt crisis.
But they appeared to leave wiggle room for a change in policy if circumstances in the eurozone worsen, sparking rumblings of concern in Berlin.
Horst Seehofer, head of the Christian Social Union (CSU), the Bavarian sister party to Merkel's Christian Democrats, said that eurobonds would be damaging to the European economy as well as unfair.
'The effect would be debt, inflation and the destruction of economic opportunities,' he said.
Seehofer said his CSU would draw a line at attempts to share out Europe's debt burden, which he said would only stoke an 'inflationary trend'.
'We again turned a blind eye to the ECB buying bonds but that should not be taken as carte blanche,' he said, referring to crisis-fighting measures taken by the European Central Bank.
'We will not go along with the next step - pooling debt. You cannot surmount excessive debt by spreading the burden to all.'
And Vice Chancellor Philipp Roesler, the head of pro-business coalition partner the Free Democrats, had earlier ruled out eurobonds as long as his party governs Germany with the conservatives.