Brussels increasingly closer to issuing Eurobonds

Europe is increasingly closer to the introduction of common Eurobonds of the countries using the single currency. Less than a month after German Chancellor Angela Merkel and French President Nicolas Sarkozy said emphatically "no" to the idea, yesterday, European Commission President Jose Manuel Barroso stated that Brussels is ready to present options for the introduction of such bonds. But he was quick to point out that the issuing of Eurobonds did not mean an immediate solution to all problems but it would only ensure resolving some of those.

The idea for the issuing of common Eurobonds has been debated since 2010, when the first signs of the debt crisis were witnessed, initially in Greece. So far, however, the large economies, and Germany and France especially, oppose a similar measure, since it will bring about additional expenditures in interest rates on their debts, while, at the same time, the rates for the countries in crisis will decline. Opponents of the Eurobonds argued that their introduction would lessen the incentive for indebted countries to settle their finances - they will continue to spend more than they can afford and the bill will be paid by the disciplined member-states on the basis of the principle "rich courtiers have to pay for the lazy ones."

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