Euro Bonds Won't Save the Euro

by Philippe Marini

Wall Street Journal
September 20, 2011

From former German Chancellor Gerhard Schröder to several French Socialist presidential hopefuls, the idea of a euro bond is gaining supporters. The rising popularity of this idea, however, makes it all the more troubling: In practice, it could constitute a potentially fatal threat to the euro zone.

I won't deny that I voted "no" in 1992, against the Maastricht Treaty that created the European Union as we know it and formed the basis for the euro. Moreover, so there is no ambiguity: The current crisis confirms my belief that we would all be better off if the euro had never been established.

However, I am today in favor of maintaining the euro, for the simple reason that its collapse would be an economic disaster. Unfortunately, many supporters of the 1992 "Yes" campaign have not learned the lessons of Europe's crisis and are attempting a dangerous leap forward for the EU and euro area.

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