BERLIN—Germany is sending strong signals that it would eventually be willing to back ideas such as joint European bonds or a banking union if European leaders are willing to give up more sovereignty and transfer significant powers over national budgets to Europe, a step that, if embraced, would redesign monetary union and be one of the boldest steps taken by the bloc since the euro was launched.
Europe has been blocked from taking bold steps to stem the crisis and calm financial markets because leaders can’t bridge two fundamentally different approaches.
“Germany is sending strong signals that it would eventually be willing to back ideas such as joint European bonds or a banking union”
This WSJ article is cites no source of these strong signals (for a fiscal union). ECB member Jens Weidmann is against it per following.
Importantly, officials from Germany’s Bundesbank have taken a harder line. Strong comments were heard on Friday from Bundesbank president Jens Weidmann. From MarketNews International: “The European Central Bank has reached the limit of its mandate, especially in the use of its non-conventional measures, ECB Governing Council member Jens Weidmann said … ‘In the end, these [measures] are risks for taxpayers, most notably in France and Germany,’ the Bundesbank chief told France’s daily Le Monde.” In reference to Eurobonds, Mr Weidmann stated (from Reuters) that ‘this debate irritates me a bit … You cannot give someone your credit card without having the means to control the spending.”
- WILLIAM BROWN