Cyprus Mail

Germany rejects idea of joint euro bonds after Macron victory

French President-elect Emmanuel Macron celebrates on the stage at his victory rally near the Louvre in Paris

Germany on Monday reiterated its opposition to the introduction of joint eurozone bonds a day after the election of French President-elect Emmanuel Macron, who favours more European integration.

Macron’s victory is a relief for Germany, the main defender of the European Union against rising anti-establishment sentiment on the right and left of the political spectrum.

However, the idea of joint borrowing by eurozone states does not play well with frugal German voters.

“I can tell you that the federal government’s dismissive attitude toward euro bonds remains valid,” government spokesman Steffen Seibert told a regular news conference when asked if Germany would back Macron should he push for euro bonds.

One proponent of euro bonds told Reuters on Monday that Macron’s clear win in Sunday’s election could mark a step toward creation of such instruments.

Chancellor Angela Merkel’s conservatives have rebuked Martin Schulz, her Social Democratic challenger in September’s general election, for calling for “euro bonds” in the single currency bloc to relieve its debt crisis.

A spokeswoman for Finance Minister Wolfgang Schaeuble said strengthening the eurozone would be one topic that he would discuss with his new French counterpart once Macron has installed a new cabinet.

“When the new government takes office there will be many common themes to discuss. This includes strengthening the eurozone economically as well as its governing structures,” Friederike von Tiesenhausen told reporters.

Macron has vowed to implement reforms that would make the French economy more competitive. In return, he wants Germany to boost spending.

Merkel said on Monday that Franco-German cooperation was a “cornerstone” of German foreign policy, adding that Germany did not need to change its economic course in response to Macron’s election victory.

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