BERLIN (MNI) – Eurogroup chairman Jean-Claude Juncker wants to
present a proposal on Monday for a possible issuance of joint eurobonds,
but the German government is still opposing it, German weekly Der
Spiegel reported Sunday, without citing its sources.
According to the magazine, Juncker advocates the creation of a
European Debt Agency which would issue the eurobonds. Some 60% of the
financial needs of fiscally ailing Eurozone member states would then be
financed via eurobonds while the remaining 40% would have to be raised
on capital markets by the concerned country itself, Der Spiegel wrote.
Meanwhile, German government officials fear that after Greece and
Ireland another Eurozone country could run into financial trouble even
before Christmas, the magazine reported. Fears are growing that the
existing EU rescue funds won’t be large enough, Der Spiegel said.
German government officials are now pondering the possibility that
all Eurozone countries could guarantee the government bonds issued by
each member state, the magazine claimed.
German Finance Minister Wolfgang Schaeuble said Friday that
financial markets are currently not speculating against individual
Eurozone countries but are rather doubting the sustainability of the
European Monetary Union as a whole.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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