GERMANY: Economy minister Philipp Roesler says that eurobonds are the "wrong way" to go because it could lead tax increase

Record ID: 402030

  • Title: GERMANY: Economy minister Philipp Roesler says that eurobonds are the "wrong way" to go because it could lead tax increase
  • Date: 16th August 2011
  • Summary: WAREN, GERMANY (AUGUST 15, 2011) (REUTERS) GERMAN ECONOMY MINISTER PHILIPP ROESLER GETTING OUT OF CAR CLOSE ROESLER JOURNALISTS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, PHILIPP ROESLER, SAYING: "We still think that eurobonds are the wrong way (to go). It would punish those countries that were doing their homework, which are economically sound, like Germany, which
  • Embargoed: 31st August 2011 13:00
  • Keywords:
  • Location: Germany, Germany
  • Country: Germany
  • Topics: Finance,Politics
  • Reuters ID: LVA34WFY1YYSCK19BHNCLWRDP0JO
  • Story Text: As eurozone countries scramble to solve the currency bloc's debt crisis, members of the German government are digging in their heels against calls for common eurozone government bonds.
    Speaking to German news magazine Der Spiegel, Finance Minister Wolfgang Schaeuble said there would be "no sharing of debts and not an infinite amount of aid [available]" as eurozone leaders worked on strengthening the European Financial Stability Facility (EFSF) to steer the 12-year-old euro out of harm's way.
    Economy Minister Roesler also spoke out against eurozone bonds during a visit to Waren during the election campaign for his party.
    "We still think that eurobonds are the wrong way (to go)," Roesler said. "It would punish those countries that were doing their homework, which are economically sound, like Germany, which enjoy a good credit ranking and therefore pay low interest rates," the minister and vice-chancellor added. He said that Eurobonds would mean high taxes, "and that we cannot want for Germany, or for Europe in general."
    French President Nicolas Sarkozy is expected to try to get German Chancellor Angela Merkel on board with the so-called eurobonds when they meet in Paris on Tuesday (August 16).
    The leaders of the eurozone's strongest economies are to discuss ways to pull debt-ridden countries like Greece and Italy back from the brink, while staving off fears that France and Germany could lose their top-notch AAA credit ratings under the weight of a troubled eurozone.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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