Eurobond argument ignites

first_img EUROZONE leaders are locked in a dispute about whether to issue region-wide bonds, even as the European Central Bank (ECB) steps up its intervention in the bond markets to try and stem the rise of gilt yields.Luxembourg Prime Minister Jean-Claude Juncker and Italian finance minister Giulio Tremonti yesterday called for the creation of Eurozone bonds to shore up the “irreversibility of the euro”, but the idea immediately drew heavy fire.German chancellor Angela Merkel declared that the idea would go against current EU treaties while Austrian finance minister Josef Proell said: “I am very, very critical of the eurobond idea. It can’t be that each country, which like Austria has run a disciplined economy, has to pay up.”The argument follows the announcement last week that the Eurozone’s bailout fund will issue €5bn-€8bn (£4.2bn-£6.8bn) of euro-denominatd bonds in January. Some see the action as a precursor to the creation of a single Eurozone sovereign debt market. But Germany is likely to strongly resist: its borrowing costs are currently 2.85 per cent for 10-year debt, versus 4.5 per cent for Italy, while a Eurozone bond yield would be likely to sit in between, increasing German costs.Meanwhile, the ECB continued its intervention in secondary bond markets in a desperate bid to stop the rise of peripheral Eurozone debt yields. Figures released yesterday reveal that it bought €1.97bn’s worth of bonds in the week up to 3 December.However, the intervention is a far cry from its dramatic actions in May, when it soaked up €16.5bn of bonds in one week. Economists are doubtful that the Bank can achieve anything more than a temporary respite. Show Comments ▼ KCS-content Tags: NULL whatsapp More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comKiller drone ‘hunted down a human target’ without being told tonypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comcenter_img Share Eurobond argument ignites by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm Monday 6 December 2010 9:09 pm whatsapplast_img

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