Joint fund for eurozone eyed
We need imagination and creativity to find new financial instruments
— FRENCH PRESIDENT FRANCOIS HOLLANDE
French President Francois Hollande called Thursday for the eurozone to adopt bold new mechanisms to insulate member states and their banks from market turmoil, such as a joint fund to pay down debt, putting him on a collision course with Berlin.
After a meeting with Ital
ian Prime Minister Mario Monti, Hollande said he
would urge EU leaders to adopt a series of measures to strengthen economic growth and financial stabil
ity in the eurozone and deepen economic integration.
Hollande said he had submitted details of his proposals to European Council president Herman Van Rompuy.
“We need imagination and creativity to find new financial instruments,” Hollande told a joint news conference with Monti.
“To deepen financial union,
there are many options such as a financial trans
actions tax and joint debt issuance, including euro bonds, euro bills or a debt redemption fund,” he said.
The French leader urged closer co-operation between member states on
financial regulation to break the link between struggling eurozone states and their weakened banking systems.