Germany rejects idea of joint euro bonds

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Published May 8, 2017

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Berlin - Germany on Monday reiterated its

opposition to the introduction of joint euro zone bonds a day

after the election of French President-elect Emmanuel Macron,

who favours more European integration.

Macron's victory is a relief for Germany, the main defender

of the European Union against rising anti-establishment

sentiment on the right and left of the political spectrum.

However, the idea of joint borrowing by euro zone states

does not play well with frugal German voters.

"I can tell you that the federal government's dismissive

attitude toward euro bonds remains valid," government spokesman

Steffen Seibert told a regular news conference when asked if

Germany would back Macron should he push for euro bonds.

One proponent of euro bonds told Reuters on Monday that

Macron's clear win in Sunday's election could mark a step toward

creation of such instruments.

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Chancellor Angela Merkel's conservatives have rebuked Martin

Schulz, her Social Democratic challenger in September's general

election, for calling for "euro bonds" in the single currency

bloc to relieve its debt crisis.

A spokeswoman for Finance Minister Wolfgang Schaeuble said

strengthening the euro zone would be one topic that he would

discuss with his new French counterpart once Macron has

installed a new cabinet.

"When the new government takes office there will be many

common themes to discuss. This includes strengthening the euro

zone economically as well as its governing structures,"

Friederike von Tiesenhausen told reporters.

Macron has vowed to implement reforms that would make the

French economy more competitive. In return, he wants Germany to

boost spending.

Merkel said on Monday that Franco-German cooperation was a

"cornerstone" of German foreign policy, adding that Germany did

not need to change its economic course in response to Macron's

election victory. 

REUTERS 

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