Eurobonds pushed as solution to crisis
The European Commission chief said Monday he wants to introduce eurobonds issued jointly by the 17 euro nations as an effective way to tackle the financial crisis, an idea that puts him on a collision course with German Chancellor Angela Merkel. Jose Manuel Barroso said a eurobonds plan makes sense if linked to fiscal rigor among the member states sufficiently stringent to make it impossible for profligate nations to live on the back of budget-conscious countries. Germany has opposed the principle of eurobonds since it would expose its taxpayers to the bad debt of weaker countries. As Europe’s largest economy, Germany already funds the bulk of the existing bailouts.