Euro­pean bonds plan pro­posed amid eu­ro­zone cri­sis

The Pak Banker - - International3 -

LONDON: Euro­pean lead­ers were urged on Mon­day to cre­ate a mar­ket for joint Euro­pean govern­ment bonds in a bid to end the eu­ro­zone's mount­ing cri­sis, but the sug­ges­tion was met with Ger­man scep­ti­cism.

Jean-Claude Juncker, head of the Eurogroup of eu­ro­zone fi­nance min­is­ters, and Gi­ulio Tre­monti, Italy's fi­nance min­is­ter, called for the rapid in­tro­duc­tion of "E-bonds," in a joint ar­ti­cle in the Fi­nan­cial Times.

As Europe's fi­nance min­is­ters meet in Brus­sels to try to se­cure the euro's fu­ture, Juncker and Tre­monti urged the cre­ation of the new bonds to send a mes­sage to mar­kets and Euro­pean cit­i­zens about "the ir­re­versibil­ity of the euro."

The plan would lead to a "liq­uid global mar­ket for Euro­pean bonds," they wrote, which would help pro­tect coun­tries from spec­u­la­tion and at­tract new cap­i­tal flows into Europe.

"We be­lieve this pro­posal pro­vides a strong, cred­i­ble and timely re­sponse to the on­go­ing sov­er­eign debt cri­sis," said Juncker-who is also Lux­em­bourg's prime min­is­terand Tre­monti. -Ap

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