Hernab Van Rompuy, president of the European Commission, has advocated eurobonds as a means of sharing the burden of the region’s debt in a call that is likely to raise tensions with Berlin.
by Louise Armitstead
Ahead of next week’s European Union summit, Mr Van Rompuy unveiled a report which called for the examination of “the pooling of some short-term sovereign funding instruments, for example, treasury bills, on a limited and conditional basis”.
The report was commissioned by the European Council and is designed – once it is finished in December – to be a “time-bound road map to the achievement of a genuine economic and monetary union”.
Mr Van Rompuy – who said the EU was the “biggest peacemaking institution ever created in world history” as it was awarded the Nobel Peace Prize – also called for a banking union, with a single supervisory body and a common resolution framework. But, in a move that will be welcomed by the UK, Mr Van Rompuy also said the new regime should be “fully consistent with the single market” and work to “preserve the level playing field across the EU”.