Europe’s Small Steps and Giant Leaps
Issuing Eurobonds essentially amounts to a “Three Musketeers” (all for one and one for all) approach by letting eurozone countries borrow money in solidarity. But, to work, this strategy requires far deeper political integration than European governments are willing to admit.
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BRUSSELS – The world was expecting Eurobonds to come out of last week’s Franco-German summit; instead, the eurozone will get economic governance. According to German Chancellor Angela Merkel and French President Nicolas Sarkozy, the great leap forward to the creation of Eurobonds would perhaps be the culmination of that process, but for the moment small steps remain the order of the day. The question, obviously, is whether or not these small steps serve any purpose.