Euro BondsEurobonds?

JyllandsPosten has:

Danish Prime Minister Helle Thorning-Schmidt states before the EU-summit that ends the Danish chairmanship period:

“Danes are not liable for other nation’s debt”

(She didn’t add: We have problems in spades with OUR home owners’ ditto!)

The Prime Minister is thus repeating the standpoint laid before the parliamentary EU-committee and gaining a majority parliamentary support.

Comments:

1) The press has portrayed the issue of Eurobonds as a question of Germany’s Bundeskanzler Angela Merkel standing solitary guard against a united EU with the contrary point of view. This is far from the truth. The debt ridden vociferous PIIGS countries have projected a distorted view of the situation – apparently from the conviction that if you whine loud enough and stamp your feet you will have it your way. How other northern EU nations stand has not been clarified.

2) The matter has in fact nothing to do with EUR or no EUR. The central issue is that liability – without the instruments to ensure the ability and willingness of the debtor – is not an option.