Ollie Rehn says the European Commission may present draft legislation on joint euro bonds after completing a feasibility study on common debt sales, according to a Bloomberg report. This would pressure Germany to drop its opposition to the bonds, the report says.
Germany’s interest cost would skyrocket if euro bonds were introduced as they would not longer borrow at their own low rates but at a blended rate that would apply across the euro zone. That is a big source of German discomfort with the idea.
