Brussels, 21/12/2011 (Agence Europe) - A draft resolution tabled on Tuesday 20 December by the European Parliament's economic and monetary affairs committee says that eurobonds could provide stability in the eurozone, but would not solve immediate problems.
At the same time the committee also approved a question to be put to the Commission at Parliament's next plenary session on the progress of its Green Paper on eurobonds, asking for an analysis of the reactions received so far.
The resolution welcomes the Commission's consultative document on the introduction of “stability bonds” but also notes that further work is required on some issues. These would include specific ways of addressing potential moral hazard, making the system attractive for AAA countries as well as heavily indebted ones, increasing competitiveness, and introducing enforceable debt reduction systems, among others.
To tackle immediate difficulties, the resolution calls on the Commission rapidly to table proposals “to decisively address the current crisis, such as the European redemption pact proposed by the German Council of Economic Experts (...), the finalisation and ratification of a European stability mechanism treaty (...), eurobills as well as joint management of sovereign debt issuance”.
Eurobonds can become a source of stability for the eurozone in the medium term, but cannot meet its short term needs, said the economic and monetary affairs committee in a resolution voted on Tuesday. Whilst continuing to advocate introducing eurobonds, MEPs also urge the European Commission to tackle short-term needs, e.g. through the “European redemption pact”, proposed by the independent economic advisers to the German government.
The resolution and question to the Commission are expected to feature on the next EP plenary session agenda. (LC/transl.fl)