Bloomberg: Germany isn't yet ready for eurobonds, Kampeter says

21 May 2012

Deputy Finance Minister, Steffen Kampeter, said that Europe's new budget treaty and permanent rescue facility are a first step "but not yet the final step" to the political union that Germany says is a prerequisite before it will agree to joint euro area bonds.

"We have always made clear that we completely oppose joint financing via eurobonds as long as fiscal policy in Europe is not integrated”, Kampeter said. Introducing eurobonds now would mean bond interest that is “too low and takes the pressure off adjustments to the European economy”. For years, Greece had something similar to eurobonds and failed to seize the opportunity provided, “that’s why I believe that prescription comes at the wrong time and carries the wrong side-effects”.

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