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It's a new record (inside 30 minutes by our count) as a German Finance Ministry spokesman denies...

It's a new record (inside 30 minutes by our count) as a German Finance Ministry spokesman denies a WSJ interview with finmin Schauble suggests a change of policy towards eurobonds. Schauble has now personally denied any policy change, reports Bloomberg's Mike McKee.
Comments (2)
  • bixbubba
    , contributor
    Comments (318) | Send Message
    There seems to be a change in that a few months ago, the Germans were ok with rumors of things like eurobonds and ecb bond purchases. but now they dont even want rumors to survive for an hour without unequivocal clarity. ("over my dead body", etc)
    28 Jun 2012, 10:11 AM Reply Like
  • Techmonkey
    , contributor
    Comments (23) | Send Message
    1. It's closer to the next federal election in Germany.
    2. Progress in Greece has been minimal on their promised changes (reducing govt employment, privatizing, etc.). Italy has done a bit more, but it's a hard sell to the German public to keep sending money to southern Europe when systemic changes have not been made...and when the leftist opposition speaks of rolling back those changes which have been made.
    3. The promise (or even hint) of eurobonds or eurobills is their largest negotiating chip. They don't want to use it unless they get everything they want in return. Given the process to get everything they want is akin to a constitutional amendment in the US, it's far too early in the process to do more than drop the vaguest hint of the possibility if tighter fiscal union and political union are achieved.
    4. They'd rather patch the current euroboat than give the PIIGS a new eurobondboat to go out and wreck.
    28 Jun 2012, 11:32 AM Reply Like
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