First of all let me say that I think that eurobonds could solve the eurocrisis in some way but that in order to have eurobonds Germany should be compensated in some way! Let me explain:
We know that Angela Merkel does not want eurobonds. Imagine that the rest of the eurozone could create the eurobonds but without Germany (I think this is not possible but let’s imagine it could be done …) Well, if the rest of the eurozone created eurobonds they would not be good as the markets would prefer the German bonds! What I mean is that to create eurobonds is like putting eggs in a basket. The basket of euroeggs only would be solt at the market because of the German eggs! If you put out the German eggs nobody would bye the eurobasket of eggs.
What I mean is that if you create eurobonds it is for sure that they would profit from the confidence in germany while some of the rest of country would be just a source of insecurity for the eurobonds! So it is obvious that the Germans would be fools to accept the eurobons: it would mean they would have to pay more interests while at the same time they are the ones that would bring a bit of confidence to these new bonds!: In summary: advantages for the rest of the eurozone and a clear disadvantage for Germany.
One could say to Angela Merkel: Ok, we know that the eurobonds are good for the rest of the eurozone and but for Germany but if you do not accept the eurobonds then countries of the eurozone won’t be able to handle is own bonds and the eurozone will collapse! Well, it is obvious that this could be said but I don’t think it is fair to say that to Germany because I feel as if we were blackmailing Germany. It would be like saying: pay for the wrongdoinf of other states or the eurozone breaks!
Above I have been defending Germany so let me put the things now in a more favourable point of view towards other countries. People in countries with a lot of austerity measures could say that they are doing all these sacrifices to maintain the euro alive while Germany does not want to make any sacrifice.
I think we all should make sacrifices but I think that you cannot just punish Germany because some of the rest have spent too much! Here, in the south of Europe, I have examples where money has been wasted (Pharaonic stations of high speed train in Spain with almost no passengers! I know one of these stations and it is a REAL SHAME!)
So maybe we should find a compromise! I think that the eurobonds could be good for the eurozone but as it is obvious that Germany would be the great loser I think that Germany should be compensated! If you create eurobonds and not compensate Germany then that would be crazy because it would be as promoting the bad handling of the money and punishing Germany!
Let me end then by saying that I think that eurobonds are good but that once you create them you have to compensate! The other countries should pay to Germany the extra costs that would mean for Germany! My friends in Germany should in no means pay by the waste of money that politicians from my country and other countries have been doing these last years.
- Merkel urges changes to EU treaty (bbc.co.uk)
- Merkel slaps down EU push for eurobonds (seattletimes.nwsource.com)
- Merkel slaps down EU push for eurobonds (sfgate.com)
- German Chancellor Rejects EU Eurobond Proposal (huffingtonpost.com)
- Merkel slaps down EU push for eurobonds (seattlepi.com)
- EU study: Eurobonds best way out of crisis (sfgate.com)