BERLIN (AP) — German Chancellor Angela Merkel has insisting that Europe can pool its debt only when governments' compliance with fiscal rules can be ensured — and says introducing so-called eurobonds now would be "economically wrong."
Merkel addressed the German Parliament on Wednesday amid mounting pressure for her country to give up its fierce resistance to pooling debt. Berlin argues it makes no sense to share liability for debt before Europe has undergone a long process of integration and installed tough control mechanisms.
The chancellor told lawmakers a quick move to eurobonds or other forms of joint liability would be constitutionally impossible in Germany and insisted that "supervision and liability must go hand in hand." She said they could only be considered if and when "sufficient supervision is ensured."