Brussels, 06/12/2010 (Agence Europe) - In Brussels on Monday evening (6 December), eurozone finance ministers will discuss increasing the cash in the fund for bailing out struggling countries (EFSF) and the controversial idea of issuing European bonds (eurobonds) - two possible answers to the financial crisis that seems to be settling down now although the weakest eurozone countries are still exposed to speculation despite the ECB's restoration of temporary calm by buying into Portugal's and Ireland's debt.
Increasing the EFSF (European Financial Stability Facility) and the idea of issuing eurobonds are resisted by Germany, whose views were expressed by Chancellor Angela Merkel and Finance Minister Wolfgang Schauble. The idea of eurobonds was mooted by the chair of the Eurogroup, Jean-Claude Juncker of Luxembourg, and Italy's Finance Minister Giulio Tremonti, in a joint column in the Financial Times where they say they want to send a message to the markets and to citizens that there is no going back on the euro.
The ministers met at 5.00pm for their monthly meeting, attended by the director general of the International Monetary Fund (IMF), Dominique Strauss-Kahn. The meeting was preceded on Sunday evening by a dinner attended, according to reports in press agencies, by President of the European Council Herman Van Rompuy; President of the European Commission José Manuel Barroso, Belgian Finance Minister Didier Reynders, acting president of ECOFIN, and Chairman of the Eurogroup Jean-Claude. Juncker. The Eurogroup meeting will be followed on Tuesday 7 December by a meeting of finance ministers from all the EU member states.
The idea of eurobonds (loans issued jointly by several member states to pool risk and avoid the weakest countries coming under attack from speculators) is nothing new. It is backed by the European Parliament and has many supporters at the European Commission, although Commission President Barroso will not voice his opinion on the matter. Commissioner Olli Rehn says the idea is “intellectually attractive”; Industry Commissioner Antonio Tajani talks of it as a “challenge to be taken up”. Leaving a meeting with Barroso, Greek Prime Minister Georgios Papandreou said he “favoured” the idea. (Gp/transl.fl).