EU's Barroso defends eurobonds proposals

 　　BRUSSELS, Nov. 23 (Xinhua) -- European Commission chief on Wednesday firmly defended the proposals for jointly 2 issuing "Stability Bonds," otherwise known as eurobonds.

　　The bonds are "an example of reinforced governance, of a strong will to live together in the euro area, and a good example of discipline and convergence," European Commission President Jose Manuel Barroso said.
　　With Germany strongly opposed to the plan amid worries that the eurozone's leading economy would end up being the financial backer of the bonds, Barroso said the "Stability Bonds will not solve our immediate 3 problems and cannot replace the reforms that are needed in countries currently under pressure."
　　"But it is also important to show to public opinion and to international investors 4 that we are serious about stronger governance in the euro area, both in discipline and in convergence," he added at a press conference after unveiling the three options for jointly issuing the eurobonds in a Green Paper on Stability Bonds.
　　The first option suggest the full replacement 5 of all 17 national euro area bond markets with common obligations, backed jointly by all eurozone governments.
　　The second option would also involve common eurozone bonds, but only up to an agreed-upon level. Countries with debt beyond that level would have to resort to their own national bonds.
　　The third, and the most limited, option would see joint 1 eurozone bonds, but with individual governments guaranteeing only their own share of the issuance, meaning, for example, that Germany could not be responsible for a Greek default.
　　"We believe it is better to put those different options, in what I believe is a very objective way, based on sound analysis, to public consultation 6, including of course all our member states, but also the citizens of Europe, the experts and the different elements of our civil society," he said.
　　In response to a question as to whether the proposals were intended to go against Germany, Barroso said, "I think that it would be absolutely completely inappropriate to consider a debate, a serious debate, on very important issues as something against a specific member state... and the most important economy."
　　"So, certainly our intention is not to go against anybody and certainly not against the member state that is the biggest economy in the euro area and in the EU, but we have the duty to produce element for this rational debate," he added.
　　On any possibility of the idea of "Stability Bonds" be realized, Barroso said, "I absolutely don't agree that there is absolute opposition 7 of any country. On the contrary, I get the exactly the opposite impression, that the idea of having stability bonds is making its way."
　　He added, "If you look at those comments made by people from Germany, they are in fact most of all about the timing 8 of the options we are now putting (forward)."
　　Barroso appealed to all member states to be "open-minded and free of dogma," citing the approval of enhancing the firepower of and adding flexibility 9 to the European Financial Stability Facility (EFSF) as an example of what proposals can lead to.
　　"When we first proposed, we had a situation where some eurozone member states said they would never accept the enhancement of the EFSF, adding flexibility to it and allowing it to intervene in the secondary market, but they have agreed on what they said they would never agree on," he said.