Finance

Finance

Germany says euro bonds â€˜wrong toolâ€™ for Europe

24 May 2012 12:23 (UTC +04:00)

Baku - APA-Economics. German Economy Minister Philipp Roesler reiterated his countryâ€™s resistance on Thursday to the French-backed idea of using euro bonds, a form of pooled debt-raising, to help bolster Europe’s flagging economy, Al-Arabiya reported.

â€œWe believe that euro bonds are the wrong tool to stabilize Europe because it would take away the pressure for reform in our partner countries and it would also undermine market discipline,â€ the minister said in Paris.

â€œEurobonds would reward those countries with unsound budgetary policies and it would punish those states that try to have a sound budgetary policy,â€ the minister, attending a forum at the OECD public think tank in Paris, said.

French President Francois Hollande urged a reluctant German Chancellor Angela Merkel and other European leaders at talks on Wednesday to consider recourse to euro bonds among measures that could be deployed in Europe, a region plagued by economic stagnation and a debt market crisis.