Germany refused to share the debt burden of stressed eurozone peers, ignoring two of the most influential international economic bodies which offered support for proposals championed by Paris, Rome and Brussels ahead of a summit.
“There is no way of introducing them under the current EU treaties. Indeed, there is an explicit ban on them”, one senior German official said, adding Berlin would not drop its opposition in the foreseeable future. “That’s a firm conviction which will not change in June.” Increased jitters over how Europe’s banking system would be affected by an exit of Greece from the eurozone have lent urgency to the latest discussions over measures to tackle the sovereign debt crisis.
The eurobonds debate could produce fireworks between Mr Hollande and Ms Merkel – a possibility that has captivated officials involved, given the comparatively harmonious Franco-German relationship in the latter years of Nicolas Sarkozy’s tenure. But most diplomats believe Ms Merkel would succeed in blocking any proposal, producing more smoke than fire.
“They say that when Germany and France don’t cooperate, we have a problem”, one senior diplomat from a smaller EU country said. “And when they do, we have a problem, too.”
Full article (FT subscription required)
© Financial Times
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article