The European Union launches the community bond project, bonds designed to give greater financial stability to the countries of the Eurozone and the European Union. The 'Stability Bonds' were presented today in Brussels by the President of the European Commission, Josè Manuel Barroso, and by the EU Commissioner for Economic and Monetary Affairs, Olli Renh. Contained in the 'Green Paper for Stability Bonds', the last chapter of the package drawn up by the EU Commission for growth, stability and the strengthening of economic governance, these bonds are currently a hypothesis in the field for dealing with the crisis.
“We believe that the creation of a common bond market can bring great benefits to the EU,” Barroso said at a press conference. On the subject, now, "there is the first formal contribution", with the presentation of a document that initiates the debate. The hope is "to have a clear and objective analysis and a discussion that is not tackled with dogmatic positions". The EU thus breaks the taboo on Eurobonds by renaming them Stability bonds "to distinguish them from other bonds, such as Project bonds, for example", Barroso underlined.
At the basis of the project there are two key elements, as explained by Olli Rehn: on the one hand the "possible benefits in terms of stability, financial strength and market effectiveness", and on the other "the interaction between the stability bonds and strengthened economic governance”. In fact, other measures will be needed, because by themselves – continued the Portuguese – “they do not solve our problems immediately, nor can they replace the indispensable reforms”.
Three areas of possible application of these EU bonds are under study: a full option, with the substitution of all sovereign bonds ("the fragmented sovereign bond market is currently under stress", remarked Rehn), a partial option , with joint guarantees (the idea is of a coexistence between 'red bonds' guaranteed by the member states and 'blue bonds' guaranteed by the EU), and a partial option with non-joint guarantees. According to Rehn, "the second option would give a greater guarantee of financial stability, but would require an amendment to the EU treaty, and therefore time for implementation".
On the entire Stability bond chapter, "we are launching a broad consultation anyway", highlighted the vice-president of the EU Commission. But if Rehn already makes it clear how he would like to proceed, Barroso on the other hand does not say too much: "The Commission has not currently formed its own opinion" on the matter. Now we need to listen to everyone and "only at the end of the consultations", only "at the appropriate time" will the reservations be lifted. "To consider our move as an act against some government of a member country would be absurd", replied the Portuguese to those who asked him if this decision could have repercussions in relations with Germany, reluctant to introduce community bonds.
"From my contacts I can tell that there is no opposition, on the contrary there is interest". The reserves "are there, but they concern the timing". With this, Barroso concluded, “I am happy, because it means that there are no reservations on the merits”.
