ROME, Feb 21 (Reuters) - Momentum grew on Saturday behind a proposed common European bond to help bolster fragile member states during the global economic crisis as the International Monetary Fund threw its weight behind the idea.
Germany and France urged a radical overhaul of global financial rules ahead of a major summit on Sunday which aims to forge a common response to the crisis, but bloc heavyweights such as Germany are expected to try and stymie a euro bond plan.
'We have a big player which is the European Union and there is no reason why it shouldn't have its own way of financing and to issue bonds is a good idea,' IMF Managing-Director Dominique Strauss-Kahn told a news conference in Rome.
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If agreed on, common euro zone bonds would in a matter of a few years create a highly liquid market of some 4 trillion euros ($5 trillion) which could successfully compete with a similar size U.S. treasuries market for large investors like China.
http://www.xe.com/news/2009/02/21/258525.htm?categoryId=1¤tPage=1
Germany and France urged a radical overhaul of global financial rules ahead of a major summit on Sunday which aims to forge a common response to the crisis, but bloc heavyweights such as Germany are expected to try and stymie a euro bond plan.
'We have a big player which is the European Union and there is no reason why it shouldn't have its own way of financing and to issue bonds is a good idea,' IMF Managing-Director Dominique Strauss-Kahn told a news conference in Rome.
...
If agreed on, common euro zone bonds would in a matter of a few years create a highly liquid market of some 4 trillion euros ($5 trillion) which could successfully compete with a similar size U.S. treasuries market for large investors like China.
http://www.xe.com/news/2009/02/21/258525.htm?categoryId=1¤tPage=1