Merkel says eurobonds 'economically wrong'

Angela Merkel

German Chancellor Angela Merkel on Wednesday brushed aside the latest push to pool European debt, arguing that it would be "economically wrong and counterproductive" to make such a move before governments have shown they can comply with budget rules.

In the run-up to another European Union summit, Merkel is facing mounting pressure to soften Germany's fierce resistance to jointly issued eurobonds or other forms of debt pooling.

Though eurobonds could reduce borrowing costs for eurozone strugglers, like Spain and Italy, they could increase them for Germany and some others.

Berlin worries about being liable for other countries' debts without being able to ensure that they push through economic reforms.

Note EU-Digest: Mrs. Merkel is absolutely right. You can't have your cake and eat it too !

 Read more: Merkel says eurobonds 'economically wrong' - World - CBC News