Eu­ro­zone bond would cost Ger­many €17b

The Pak Banker - - International3 -

FRANK­FURT: Is­su­ing a com­mon eu­ro­zone bond would cost Ger­many at least 17 bil­lion eu­ros (22 bil­lion dol­lars) more per year, the daily Frank­furter All­ge­meine Zeitung (FAZ) said on Mon­day.

The news­pa­per did not cite the source for its fig­ure but said Chan­cel­lor An­gela Merkel "could count on it" dur­ing a Euro­pean Union sum­mit meet­ing in Brus­sels later this week.

Merkel is staunchly op­posed to a pro­posal by Eurogroup chair­man Jean-Claude Juncker of Lux­em­bourg to is­sue com­mon eu­ro­zone bonds, an idea backed by sev­eral coun­tries in south­ern Europe. France, the Nether­lands and other EU mem­bers have said they too op­pose the plan.

A com­mon bond would lower bor­row­ing costs for coun­tries with debts and deficits that make them higher risks in fi­nan­cial mar­kets.

But it would raise costs for those that have main­tained tighter fis­cal dis­ci­pline. Merkel said Fri­day that "shar­ing in­ter­est rates and risks is not go­ing to help us struc­turally." -Ap

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