
Germany has again stated its opposition to so-called eurobonds as the new French finance minister prepares to meet his German counterpart for the first time.
Pierre Moscovici will meet German Finance Minister Wolfgang Schaeuble in Berlin and is expected to press for measures that would boost growth.
Eurobonds are a proposal to issue debt on behalf of all 17 euro countries.
But a German minister said they would be "a prescription at the wrong time".
"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.
And 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.
France's new Prime Minister, Jean-Marc Ayrault, told the newspaper Liberation that politicians should consider all measures, including borrowing from the European Central Bank.
Uncertainty over the situation in Greece and fears over the banking sector in Spain have pulled share indexes and the euro lower in the past few weeks.
EU leaders are due to meet for an informal dinner in Brussels on Wednesday, followed by a major summit at the end of June.
No comments:
Post a Comment