According to the EU monetary chief, the eurozone may only have a few days left to find a way out of the crisis. But economic analyst Michael Mross believes that Germany would rather let the euro die than support the idea of Eurobonds.
Mross says that introducing Eurobonds might be the only way to postpone the fall of the euro. But Angela Merkel seems to be standing against the whole eurozone, once again rejecting collective borrowing through Eurobonds.
“When Angela Merkel says no to Eurobonds, this means nothing other than no to the euro,” Michael Mross told RT. “Because you don’t have to be an economist to know that a common currency cannot work without a common bond market.”
“If you want to have a common currency, you have to have one single rulership in Europe,” Mross added. “But nobody wants it.”
Michael Mross believes that Merkel’s idea is to let euro die by itself.
“Because of the fact that Germany is not permitted to pull out of the euro, Angela Merkel says ‘we don’t want Eurobonds.’ And without Eurobonds the euro will not work,” he explained.
Mross however agrees that the Eurobonds will only trigger the process of transferring more money from Germany to other European countries.
He also says that it is too late for the debt-hit countries to do their “housework” in order to keep their economies in good shape. And as the time to find a solution runs out, Mross expects the EU summit in Brussels on December 9 to change nothing.
“Every week we have a new emergency meeting, every week we have a new summit, every week we have new hopes, and every week nothing happens,” he said.
Dr Jan Hagen from the European School of Management and Technology, believes that there is no easy way out of the European crisis and agrees that introducing Eurobonds is not the appropriate solution.
“There are no easy fixes for the current crisis,” he said. “And I think [Merkel] is right to resist the call for Eurobonds. This seems to be the easy way, but actually it has a lot of dangers. And the ways she likes to steer Europe out of this crisis is by focusing on getting the problems of the eurozone structure fixed.”
Hagen says that Merkel is actually trying to align European economies to the same rules.
“That basically means addressing the issue of fiscal unity and making sure that national governments basically stick to the same rules within the eurozone,” he said. “And that is something that requires a lengthy political process.”