BERLIN Aug 20 Issuing joint euro bonds would
cost Germany billions of euros each year, according to finance
ministry experts cited in a magazine on Saturday.
"In the first year it would mean 2.5 billion euros of
additional interest rate costs for Finance Minister Wolfgang
Schaeuble's budget, in the second year the costs would be twice
that," Der Spiegel magazine wrote in a statement ahead of the
In the tenth year, the additional cost would be between
20-25 billion euros, according to finance ministry calculations,
Der Spiegel said.
The calculations were based on euro bonds with 0.8
percentage points higher interest rates than for German
sovereign bonds, the magazine said, in line with bonds the
European Central Bank currently sells to finance its part in the
euro zone bailout scheme.
Germany has led resistance to calls that the euro currency
bloc should issue common euro bonds and expand its bailout fund
to calm repeated market sellofs of government bonds and bank
shares of vulnerable debtor countries.
German Chancellor Angela Merkel on Friday reiterated her
criticism of proposals for euro zone bonds, saying this was a
"slippery slope" that would probably leave everyone worse off.
Schaeuble also rebuffed the idea at his ministry's open day
on Saturday, saying Europe could not have uniform interest rates
on its debt unless its fiscal policy was also made collectively.
(Reporting by Annika Breidthardt; editing by James Jukwey)