Brussels, 17/03/2014 (Agence Europe) - The head of list for the Christian Democrats and European Socialists for the May 2014 European elections, Jean-Claude Juncker of Luxembourg and Martin Schulz of Germany respectively, have both said that they favour partial pooling of sovereign debt in the eurozone in the long term.
Pointing out that he suggested the idea of eurobonds, along with Italian Finance Minister at the time Guilin Tremonti, Juncker said “I think they are the right instrument in the long term” for economic integration. He and Schulz were interviewed in German magazine Der Spiegel, published on Monday 17 March. Schulz said: “I am still in favour of eurobonds, but I had to take note that there will be no majorities for it in the foreseeable future”.
In the two-pack of rules updating the stability and growth pact, the eurozone legislator decided to set up an expert group to look at the pros and cons of various ways of partially pooling sovereign debt in the eurozone. The group is piloted by former member of the ECB Executive Board, Gertrude Tumpel-Gugerell (of Austria) and it will publish its findings by the end of the month (see EUROPE 10879). (MB)