FRANKFURT (MNI)- Eurobonds are no solution to solve the Eurozone’s
problems, Portuguese Prime Minister Passos Coelho said in an interview
with German daily Handelsblatt published on Friday.

“Eurobonds are no solution at all for the problems we are facing
today,” Coelho told the newspaper.

Shared underwriting of debt would require deep reforms of the
Eurozone including a shared EU finance ministry, he said.

The only solution is to implement tough austerity measures, Coelho
said. He offered assurances that his government “is firmly committed to
continue to meet all requirements [of its E78 billion bailout programme]
in full.” In particular, Coelho promised wide ranging privatization
efforts.

He called on fellow European leaders to implement decisions taken
on July 21 in Brussels as soon as possible to avoid the debt crisis from
spreading.

“We are now experiencing problems in Spain, in Italy and in Belgium
that can only be solved by the planned reforms [of the EFSF],” Coelho
said.

–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com

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