The Irish Minister for European Affairs, Lucinda Creighton, welcomed the news that the European Commission is considering the options for the introduction of Eurozone bonds underwritten by all states in the common currency. The policy was floated at the European Parliament in Wednesday 14th September and was met with vitriol by the German Chancellor, Angela Merkel. As the Euro’s strongest economy, Germany would stand to lose the most from collectively packaging Eurozone debt.
The Irish Minister said:
“We look forward to the Commission’s proposals with great anticipation. The crisis in the Eurozone requires brave and unprecedented action. The solidarity involved in a Eurobond system would go a long way to stabilising the markets and ensuring the survival of the Euro currency. From Ireland’s point of view, the European Monetary Union is of vital importance to the Irish economy and to ensuring the type of sustainable growth we need to see to ensure Ireland’s economic recovery.”
“Over the weeks and months ahead the Government will be working to achieve a lasting common solution to the Euro crisis. Agreement on this issue with other like-minded member states will be an important step.”
The President of the European Commission, José Manuel Durão Barroso, said in a speech on Wednesday that some Eurobonds could be introduced without the need for Treaty change. However, he was tentative about the prospects for the policy:
“But we must be honest: this will not bring an immediate solution for all the problems we face and it will come as an element of a comprehensive approach to further economic and political integration.
“Let us not confuse these projects of deeper integration with immediate necessities. Ideas that would require substantial Treaty change are not going to be a substitute for Greece doing its homework or for Euro area countries strengthening their fiscal surveillance. We must avoid compounding the dissatisfaction in public opinion by being seen as failing to deliver overnight what we already know takes time.”
The President echoed the sentiments of other EU leaders including Polish President Bronislaw Komorowski and Swedish Foreign Minister Carl Bildt in saying that “more Europe” was needed to overcome the economic crisis.