Germany Is Open to Pooling Debt, With Conditions.

[elleng]

Pressed by a banking crisis and turmoil in the markets, Germany has indicated that it is prepared to accept a grand bargain that would provide greater support for its most indebted euro zone partners in exchange for more centralized control over government spending in Europe.

The German chancellor, Angela Merkel, said that finding the way to “more Europe, not less” was the next task for Europe’s leaders. “The world wants to know how we expect the political union to complement the currency union,” Ms. Merkel said at a news conference here Monday with José Manuel Barroso, the president of the European Commission. “We have to find an answer in the foreseeable future.”

German officials remain adamant that they are not talking about euro bonds, or jointly issued debt, which they have dismissed as unconstitutional. More likely is a plan to combine much of Europe’s bad debt into a single fund with the idea of paying it off over 25 years, an idea gaining traction in Germany as an alternative to euro bonds, officials say.

http://www.nytimes.com/2012/06/05/world/europe/germany-open-to-deal-on-pooling-euro-debt-with-limits.html?nl=todaysheadlines&emc=edit_th_20120605

[limpyhobbler]

1. that's pretty big news. I guess they did not want to see Europe fall apart.

Can't say I blame them.

[OKNancy]

2. no kidding... no one should want them to fall apart

unless they would get great pleasure in seeing the US go into a deeper recession ( or depression if you think that is the case)

[drm604]

3. It's very big news.

Centralized control over spending is centralized control over pretty much everything.

It remains to be seen how cooperative Britain and France would be with such a scheme.

[Franker65]

4. It will result in opposition

Aside from Britain and France, the peripheral countries that already recieved aid mightn't be too happy. Centralised control over spending might be considered a breach of sovereignty.