The EU could finalize a draft on Eurobonds. This was stated by the Commissioner for Economic and Monetary Affairs of the European Union, Olli Rehn: "The Commission - he said - has offered to present a report to the European Parliament and the Council to develop a system of common issues for securities of European state". If appropriate, the report will be accompanied by legislative proposals but the commissioner did not go too far on the timing for either the feasibility report or the possible draft. Eurobonds, Rehn added, would aim at strengthening fiscal discipline and greater stability in the eurozone with respect to the markets.
However, the tug of war between the various souls of the EU continues. In an interview with the German newspaper Handelsblatt, Jurgen Stark, a member of the board of the ECB, expressed his opposition to Eurobonds, saying he is skeptical of the idea of Eurobonds because they would create false incentives and would essentially be fiscal transfers within the EU. “They have been portrayed as the 'silver bullet' to emerge from the crisis, but in their current state they would treat the symptoms not the cause,” he commented. A proposal to strengthen the government bonds of member countries awaiting Eurobonds came from Barclays Capital, which launches the idea of a Euro Area Lending Authority (Eaba). The task of the new authority would be to guarantee only the issuance of new debt, deriving from the marginal cost of debt which has deteriorated the debt dynamics of Italy and Spain”.
