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Portugal prime minister voices support for eurobonds

Published on 23/11/2011

Portuguese Prime Minister Pedro Passos Coelho on Wednesday voiced support for the creation of eurobonds, but not as a short- or medium-term fix to the region's economic woes.

Coelho told reporters he supports greater economic and political integration in Europe and said eurobonds already exist in principle through the European Financial Stability Fund.

“One day we will have a European treasury that issues eurobonds,” the prime minister said.

The region’s third victim of the financial crisis after Greece and Ireland, Portugal has become incapable of financing itself and in May turned to the EU and the International Monetary Fund for a 78-billion euro ($104 billion) bailout.

Coelho warned Portugal would be deceiving itself if it viewed eurobonds as an immediate economic solution.

The European Commission on Wednesday rekindled debate on the creation of eurobonds, which would create a massive market for European debt and potentially lower interest rates.