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Merkel on Eurobonds: “Not in My Lifetime”

German Chancellor Angela Merkel sought to bury once and for all the idea of common eurozone bonds yesterday (26 June), as Italian Prime Minister Mario Monti repeated calls to use the EU’s bailout funds to ease pressure on Italian debt.

Two days before a crucial European Union summit, European Council President Herman Van Rompuy released a seven-page report on closer fiscal and banking union envisaging a eurozone treasury that would issue common debt in the medium term.

Merkel immediately stamped on the idea of mutualising debt – favoured by France, Italy and Spain – at a meeting of lawmakers from her Free Democratic coalition partners in Berlin, according to people who attended the closed-door session.

“I don’t see total debt liability as long as I live,” she was quoted as saying, a day after branding the idea of euro bonds “economically wrong and counterproductive.

Political tensions were already rising before word emerged of Merkel’s dismissive comments.

Italian Prime Minister Mario Monti told parliament on Tuesday (26 June) he would repeat his call for the European Financial Stability Facility and the European Stability Mechanism, the two funds set up to provide a “firewall” against the spreading debt crisis, to be used to help ease the pressure on Italian debt. (Further reading in EurActiv)

The EU Summit will be very interesting…

PS Should we wish Merkel “Many Happy Returns”? Or just advice her to leave the Euro?

 

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5 comments

  1. “I don’t see total debt liability as long as I live,”

    As the daughter of a preacher man she should know better then to say this… “The ways of the Lord are unsearchable” 😐

    • keeptalkinggreece

      the Kingdom of Heaven is for debtors and lenders alike 🙂 – We’ll all be equal then

      • Where I come from Hell is the place where we all will end up, as we are all sinners… Memento Mori instead of Carpe Diem. 😀

        • Since Catholics refuse to accept the concept of a virtuous person — casting all people as sinners for reasons of religious dogma — one might expect such cultures to be lacking in honourable people.

          Certainly, in the case of Italian politics, the evidence supports this claim.

  2. Stubborn pig-headed people may be suitable for churches, but they make terrible politicians and policy makers.

    In just this one statement, the world will record how one person managed to destroy Europe (with the help of a miserable cripple in a wheelchair).