EU’s Rehn: euro zone bonds attractive, EFSF core mechanism

BRUSSELS, Dec 6 (BestGrowthStock) – The idea of euro area bonds is
intellectually attractive but the European Financial Stability
Facility is the mechanism for handling economic crises, the EU
commissioner for monetary affairs said on Monday.

Speaking ahead of a meeting of euro zone finance ministers,
Olli Rehn highlighted the fact that the 16 countries in the euro
zone had decided in May to create the EFSF in order to tackle
the debt crisis. They had rejected euro zone bonds, he said.

“Euro-bonds is an old concept and there has been a long
debate over a decade,” he told reporters.

“I find the idea intellectually attractive. However, I may
recall that the Commission made a proposal in May on a community
instrument for financial stability which was based on member
states loan guarantees…. As far as I understand that is the
state of play for the moment.”

He added: “Having said that, we always study very carefully
all proposals from member states.”

Asked if there is a need to upgrade the EFSF, he replied:
“This is going to be one of the issues to be discussed at
today’s meeting.”

EU’s Rehn: euro zone bonds attractive, EFSF core mechanism