Merkel: euro bonds “absolutely wrong” for crisis

By Andreas Krner – German Chancellor Angela Merkel bluntly rejected euro zone bonds as a solution to the currency area’s sovereign debt crisis, saying on Thursday (9/15/11) that “collectivizing debts” would not solve the problem.

Many investors see joint debt issuance as the best way out since it would reassure markets that Europe‘s strongest economies were taking responsibility for weaker states.

But Germany, the euro zone’s main paymaster, argues that it would raise the borrowing costs of virtuous countries and remove the incentive for profligate states such as Greece or Italy to clean up their public finances. more> http://twurl.nl/8wnp7z

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