Merkel, Sarkozy May Edge Toward Euro Bonds, Bofinger Says | Forex Factory

  • Merkel, Sarkozy May Edge Toward Euro Bonds, Bofinger Says

    From bloomberg.com

    German Chancellor Angela Merkel and French President Nicolas Sarkozy may announce proposals that “go in the direction” of joint euro-area bonds, said Peter Bofinger, an economic adviser to the German government. “Merkel and Sarkozy have to do something against this” market uncertainty when they meet in Paris today, Bofinger said in an interview on Bloomberg Television. “They cannot end this day empty handed. I think they have to deliver something.” There is “no alternative” to the introduction of euro bonds to counter the market turmoil that has spread to Italy and Spain, Bofinger said. “I don’t ... (full story)

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MickyPIP
Aug 16, 2011 5:24am
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So Germany is holding a royal flush and the rest of the players are holding nothing but want
Germany to fold to be a good sport. I dont think they will be that sporting considering they are also holding most of the chips as well. But we will see....................
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foto
Aug 16, 2011 5:21am
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The question for Germany is whether it is willing to surrender economic self determination to Brussels.
After reunification and East Gemany being under the domination of the former Soviet Union, this is a political decision that can not be so easily entered.
Is being a member of the single currency a sufficent reason to now be asked to become the funding member for all other Euro Nations lack of global competitiveness.

Merkel may have gone along with giving Trichet the green light to purchase Spainish and Italian Debt.

But surrendering German economic sovereignty is too big a hurdle for the German people to accept.

Germany was asked to be a club member not the Banker of last resort.

CDs spreads already reflect the weakening of German credit ratings due to its already deep involvement with other Euro members problems.

So there is a cost to Germany for being a member of the club.
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QuadrupleX
Aug 16, 2011 5:16am
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They want the ECB to be able to QE just like BB.
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Trader#F37D
Aug 16, 2011 5:37am
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Germany and for example finland never take eurobond.
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Trader#F37D
Aug 16, 2011 5:40am
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i am from finland and i know. Finland hate eurobonds and is not possible
to accept it.
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