German coalition may be open to euro zone bonds-report

BERLIN Wed Nov 23, 2011 2:57pm EST

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BERLIN Nov 23 (Reuters) - German backing for the issuance of joint euro zone bonds is no longer being categorically ruled out in Chancellor Angela Merkel's coalition, German daily Bild reported in an advance of an article to appear in its Thursday edition.

The normally well-informed daily quoted parliamentary sources in the ruling coalition as saying various scenarios are being discussed that could make German backing necessary for the common bonds the government has firmly rejected until now.

"The German government could, for example, be forced to come up with something in return for a tightening of the euro Stability Pact," Bild wrote in the advance on Wednesday, indirectly quoting parliamentary sources in the coalition.

Merkel and her government have repeatedly rejected the issuance of joint euro zone bonds. In a speech in parliament on Wednesday she said called a joint euro zone bond issuance "extraordinarily inappropriate."

In a Reuters story on Nov. 18, aides to Merkel said she might permit bolder measures to fight the euro zone sovereign debt crisis if European Union partners would agree to treaty changes that Germany has been seeking to impose intrusive fiscal discipline

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