Eurobonds not on agenda at Merkel-Sarkozy summit: Berlin

15th August 2011, Comments 0 comments

German Chancellor Angela Merkel and French President Nicolas Sarkozy will not bring up the divisive question of eurobonds when they meet Tuesday to discuss the eurozone crisis, Berlin said.

"Eurobonds will play no role in the talks," government spokesman Steffen Seibert told a regular news conference Monday.

"The German government does not consider it worthwhile talking about eurobonds at the present time," he said, adding that Germany does not believe this is "the right way" to go to help solve the eurozone crisis.

The French government had made a similar statement on Sunday.

Merkel is to meet Sarkozy in Paris on Tuesday afternoon to discuss the financial crisis.

The idea of eurobonds issued and guaranteed by countries with better credit ratings has long been floated as a way of helping debt-saddled Greece and other struggling eurozone members.

Germany is opposed to the introduction of eurobonds as it believes they would increase its own borrowing costs and hold back ailing countries from implementing much-needed reforms.

"We are pleased that a number of deep-rooted reforms have been undertaken in a number of European countries over the past 12 to 18 months. We believe this is a process that will continue and must continue for a while," Seibert said.

"This is the way to put the eurozone on a solid footing," he added.

The two leaders will make recommendations to European Union President Herman Van Rompuy after their talks, Seibert also said.

He also warned against any expectation that the summit would bring about spectacular results.

"You are awaiting a rolling of the drums and the brightening up of the skies over Europe," Seibert said. "There won't be such a rolling of the drums at tomorrow's meeting."

The aim of the summit will be to discuss the implementation of the measures decided by eurozone leaders at a summit on July 21 "and methods to achieve better governance," he added.

© 2011 AFP

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