IMF throws weight behind common euro zone bonds

Discussion in 'Economics' started by ASusilovic, Feb 21, 2009.

  1. ROME, Feb 21 (Reuters) - Momentum grew on Saturday behind a proposed common European bond to help bolster fragile member states during the global economic crisis as the International Monetary Fund threw its weight behind the idea.

    Germany and France urged a radical overhaul of global financial rules ahead of a major summit on Sunday which aims to forge a common response to the crisis, but bloc heavyweights such as Germany are expected to try and stymie a euro bond plan.

    'We have a big player which is the European Union and there is no reason why it shouldn't have its own way of financing and to issue bonds is a good idea,' IMF Managing-Director Dominique Strauss-Kahn told a news conference in Rome.


    If agreed on, common euro zone bonds would in a matter of a few years create a highly liquid market of some 4 trillion euros ($5 trillion) which could successfully compete with a similar size U.S. treasuries market for large investors like China.
  2. The banks need it not tomorrow but yesterday.

    It has been said such an arrangement was blocked by a Dutch/German veto but their banks are in just as big pile of shit...

    Wouldnt suprise me if something like this would be agreed upon as soon as next week.