There were some who thought that Angela Merkel might soon soften her stance on euro bonds. But on Thursday, the German chancellor once again emphasized her opposition. Why, though, is Berlin so adamantly opposed to issuing joint euro-zone debt?
Angela Merkel’s response could hardly have been clearer. European Commission President Jose Manuel Barroso on Wednesday presented a study outlining the possible forms euro bonds could take — whereupon the German chancellor found unusually unambiguous words in response. The proposal, she said, was “extraordinarily distressing.” She also called it “inappropriate.”
The reaction was unusually firm for Merkel. She has become notorious in Germany for shying away from positions that can’t be wriggled out of later. But when it comes to pooling the debt of all euro-zone member states in the form of euro bonds, she has long been firm in her rejection.