|Author (Person)||Wiesmann, Gerrit|
|Series Title||Financial Times|
German Chancellor, Angela Merkel, urged Europe on the 21 August 2011 to stand firm in the face of market pressure and the 'dramatic crisis' gripping the eurozone, insisting the solution was for states to slash public debt and boost competitiveness.
'Politics cannot and will not simply follow the markets', Germany’s chancellor said, repeating her refusal to countenance funding indebted nations with a eurobond guaranteed by all members of the single currency bloc.
However, Deutsche Welle reported that Chancellor Merkel left the door open for a possible change in policy at a later date.
Spiegel Online International reported that research conducted by the German government suggested that the bonds would face tough legal challenges in Germany, and would cost Germany billions in additional borrowing costs.
|Subject Categories||Economic and Financial Affairs|
|Countries / Regions||Europe, Germany|