There have been increasing calls for eurobonds in recent weeks as the only way to finally draw a line under the euro crisis.
While German chancellor Angela Merkel and French president Nicholas Sarkozy have rejected eurobonds for now, at least they feel pressure to pay lip service to mutualising European debt. It is encouraging that eurobonds are finally on the table as something that EU leaders feel they must address, even if to reject them. But don’t get your hopes up. The current debate on eurobonds is occurring against a backdrop of profound dysfunction in the eurozone, with countries displaying once again that they are more interested in their national self-interest than they are in solidarity and the survival of the euro...
To read more, visit the ever excellent 'Euro debt crisis' (I mean that the blog is highly recommended and not that a Euro crisis is a good thing), at the following address: