The answer to eurobonds is “no”. Chancellor Merkel took the chance at the Frankfurt Motor Show to reiterate Germany’s opposition to the idea that all countries in the euro zone collectively guarantee debts.
With Greece in mind, the head of the European Commission has raised market hopes by pledging to present options for such common bonds.
But the euro zone’s main paymaster believes the financial aid on offer should work if Greece gets its house in order.
“I am convinced that the measures step by step will help to overcome the crisis,” Angela Merkel said. “But that will only happen when these steps follow one another and as long as there is no search for ONE solution, like the buzz word ‘eurobonds’. I think they are absolutely wrong.”
Germany, France and the EU are positive that Greece will remain in the euro despite predictions of a likely debt default, leading to an exit from the single currency.
In Brussels euronews asked Olli Rehn, European Commissioner for Economic and Monetary Affairs: “what do European leaders know that most analysts don’t?”
“The future of Greece is in the euro zone. Greece will have to meet the fiscal targets and fill the implementation gaps in structural reforms in order to enhance growth and competitiveness of the Greek economy. And that also convinces its partners,” he replied.
“Convincing its partners” means putting into place more austerity measures – and in Athens the hard of hearing became the latest to demonstrate against funding cuts.
Greece is set to receive the next loan from its international bailout later this month – if inspectors from the EU, European Central Bank and IMF agree it’s on course to meet its targets.