Berlin opposes the introduction of eurobonds

29^th May 2012

After the informal dinner for Heads of State and Government held on 23rd May, the German government reaffirmed its opposition to the introduction of eurobonds. For Georg Streiter, deputy spokesman for the federal government, the introduction of common European bonds would not resolve the current crisis. On the contrary it would rock the foundations of stability. Steffen Kampeter, Parliamentary Secretary of State at the Finance Ministry declared "in the current state of affairs, the introduction of eurobonds would lead to interest rates falling too low, which would encourage European economies to relax their efforts". To overcome the crisis, Europe must rely on the budgetary pact, the signatories of which have made a firm commitment to restore their public accounts. Germany will oppose the introduction of eurobonds for as long as Europe does not have an integrated budgetary policy.

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