One day before a critical European Union summit, German Chancellor Angela Merkel says this: there are no quick or easy solutions to end the debt crisis, and that leaders should avoid making rash promises they could not keep.
Addressing members of the lower house of parliament, Merkel reiterated her view that euro bonds would be the wrong policy to pursue and Germany, Europe’s biggest economy, has finite resources.
In the run-up to another European Union summit, Merkel is facing mounting pressure to soften Germany’s fierce resistance to jointly issued euro bonds or other forms of debt pooling. Though euro bonds could reduce borrowing costs for eurozone strugglers, like Spain and Italy, they would likely increase them for Germany and some others.