In an interview with the Financial Times Deutschland on newsstands today, Olivier Blanchard, chief economist of the International Monetary Fund, has made a heartfelt appeal to Germany, to approve the introduction of Eurobonds.
According to Blanchard, in fact, the hard line of Chancellor Merkel with respect to the idea of Eurobonds would no longer make sense today, at the light of the fiscal pact signed by all EU members and the other recently introduced fiscal discipline tools. “Now we have the Fiscal Pact and the Germans should accept that the Eurozone takes the path of Eurobonds”.
In fact, in addition to Germany, the European Central Bank has also spoken out against these joint bonds which, again according to Blanchard, "will make it possible to prevent what happened last autumn from happening again: that a country has serious problems" and then end up triggering a "vicious circle" which also involves the other nations of the Euro area.
