Tag Archives: Brussels

Europe Paves the Way for Eurobonds

BRUSSELS – In June, the European Council President, Herman Van Rompuy, will present a road map to “strengthen and deepen” the monetary union, in an attempt to lift the euro in the current crisis.

“We have to bear the monetary union to a new phase. There is a consensus that we must intensify integration,” said Van Rompuy at a press conference this morning, at the end of an informal meeting with the leaders of the European Union (EU) in the Belgian capital.

Greater fiscal and monetary integration in the euro area is considered by many countries as a prerequisite for the creation of so-called Eurobonds, an initiative by France, which relies on it to help stimulate growth in the commonwealth.

However, after nearly eight hours of discussion with their counterparts, French President, Francois Hollande said he understood that “certain countries are totally hostile” to the idea, particularly Germany, a historical ally of France.

German Chancellor, Angela Merkel, said that, “Eurobonds are a tool for integration, not growth.”

“I respect your point of view (Merkel) when you say that Eurobonds are not an instrument of growth in themselves. But they are tools that can help you get growth,” the French President added.

Moreover, the rulers agreed on the need to adapt EU policies to promote growth, including the area of ‚Äč‚Äčinternational trade, and improve labor mobility and investment in training to support job creation.

It also called on the European Investment Bank (EIB) to analyze, in the face of June, how it will strengthen its capital to improve access of SMEs to credit.

The OECD and World Bank said that emerging countries have taken steps to help them cope with the crisis.