–Rehn Says He Finds E-Bond Idea “Intellectually Attractive”
BRUSSELS (MNI) — There is some opposition to the creation of
common Eurozone bonds, or E-bonds, even though the idea is
intellectually attractive, European Commissioner for Economic and
Monetary Affairs, Olli Rehn said on Monday.
Eurogroup President Jean-Claude Juncker and Italy’s Finance
Minister Giulio Tremonti have tabled a plan for E-bonds, suggesting that
the current crisis could be ended with the creation of a European Debt
Agency, which could issue common Eurozone bonds.
Germany is one of the opponents of the idea, which will be debated
at this afternoon’s meeting of the 16 finance ministers of the Eurozone,
attended by Rehn and ECB President Jean-Claude Trichet.
“Eurobonds are a broad concept,” Rehn said as he arrived for the
meeting. He added that there has been a broad debate about the bonds for
more than a decade.
While Rehn said he finds the idea of common bonds “intellectually
attractive,” he cautioned that there was likely to be some opposition to
the idea among the Eurozone’s finance ministers.
“The Commission made a proposal in May for a community instrument,”
Rehn said, but that was voted against in the EU Council, he said, adding
that he understood there was some opposition to the idea among the
Eurozone’s 16 finance minister.
“We always study very carefully any proposal from a member state,”
Rehn said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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