Eurobonds off Merkel-Sarkozy summit agenda

The French and German leaders will not discuss Eurobonds during their meeting in Paris on Tuesday.

­Angela Merkel and Nicolas Sarkozy are to have another go at stopping the Eurozone debt crisis from spreading.

The worry is that Italy and Spain may be next in line to fail, while France is also battling to keep its credit score from being downgraded.

Eurobonds are considered the panacea which would save the European economy by spreading the debt burden across the EU, transferring Northern European reliability to the southern states, which are in most financial trouble.  

But Germany does not want to risk losing its hard-earned reputation for economic reliability by  signing up for the Eurobond.

The meeting is expected to yield some results, but there are fears that there will not be a conclusive resolution.

Meanwhile, influential investors like George Soros are supporting the Eurobonds, saying the only solution for such weak countries as Portugal and Greece is to leave the euro.

The German opposition party, the Christian Democrats, who are currently leading the polls, also believe their country should take responsibility for their neighbors and accept Eurobonds.

The problem is that Germany has already been sucked into the crisis itself with its economic growth skidding to a halt in the second three months of the year. 

French political science professor, Pierre Guerlain, believes that Sarkozy‘s meeting with Merkel is “pointless” in terms of solving the Eurozone debt crisis, but that it has other purposes.  

“You must take into account domestic considerations in France for the presidential election,” he said. “Basically the German chancellor said she was not willing to talk about Eurobonds. So the meeting is a large part PR for the presidential elections in France.

”If you don’t discuss Eurobonds or solidarity within Europe than it’s not a crucial meeting at all,” Guerlain concluded.


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