Eurobonds no magic solution to crisis: Dutch Minister

23rd November 2011, Comments 0 comments

Eurobonds are not a magic solution to the eurozone's current crisis, but rather stricter fiscal discipline and budget supervision, the Dutch Finance Minister said Wednesday.

"Eurobonds are not a magic solution to the current crisis and could even worsen it," Jan Kees de Jager said in a press release.

"Although I do not exclude eurobonds in the long run, we have to do first things first and that means establishing strict supervision and enforcement of budget discipline," he said.

The European Commission on Wednesday reopened the debate on the eventual creation of pooled eurozone government borrowings, seen as a way of helping resolve the debt crisis.

Jose Manuel Barroso, EU Commission head, unveiled a feasibility study on the creation of eurobonds in Brussels.

EU Commissioner Olli Rehn has also promised strict fiscal conditions would be attached to the creation of any eurobonds.

Foreign Affairs State Secretary Ben Knapen said he welcomed the EC's proposals to ensure budgetary discipline was tightened.

"Though some may feel these proposals go too far, we would like to strengthen the Commission's hand even further within the current treaty as to ensure credible rules for all and exceptions for none," he said in a statement.

Knapen goes even further: "The Commission, as far as we are concerned, could even go a step further to ensure enforcibility."

© 2011 AFP

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