European bonds plan proposed amid eurozone crisis
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