French President Francois Hollande said on Saturday he would make proposals for eurobonds at an upcoming European summit as he outlines his ideas to stimulate growth and help ailing economies within the euro zone.
“I will outline all growth proposals at this informal meeting on May 23,” Hollande told reporters at the end of a G8 leaders meeting in Camp David. “Within this packet of proposals there will be eurobonds and I will not be alone in proposing them. I had confirmation on this at the G8.”
The Brussels meeting is expected to focus on the French president's call for measures to kick start growth across the 27-country bloc, especially in the 17-nation euro zone, while maintaining efforts to cut budget deficits.
Hollande has said he will press Berlin to lift its veto on issuing common euro zone bonds - debt issued for the whole currency and implicitly guaranteed by countries such as Germany, or to allow the European Central Bank to lend directly to governments.
Both ideas are “red lines” for the centre-right German government, although Merkel has not ruled out euro zone bonds as a long-term prospect if Europe takes more steps towards a tighter political and fiscal union.
Hollande appeared to have had a political success at the G8 with the leading global industrialised nations, including the United States, Russia and Germany, agreeing to balance austerity with a new dose of US-style stimulus.
“We had a frank discussion on growth, but budgetary commitments are not under question. There's no reason to think any country was isolated,” Hollande said when asked if the meeting had marginalised Merkel.
“If we want to move forward we have to do it with everybody that counts in Europe, Germany naturally, but also the rest of the world.” - Reuters