The euro zone could create a treasury for the single currency and issue euro bonds in the medium term as the final stage of a fiscal union, a document prepared for this week's summit of euro zone leaders showed on Tuesday.
"In a medium-term perspective, the issuance of common debt could be explored as an element of such a fiscal union and subject to progress on fiscal integration," said the report, obtained by Reuters.
"Steps towards the introduction of joint and several sovereign liabilities could be considered, as long as a robust framework for budgetary discipline and competitiveness is in place to avoid moral hazard and foster responsibility and compliance," it said.
The report was prepared by European Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, European Central Bank President Mario Draghi and President of the Eurogroup Jean-Claude Juncker.
"The process towards the issuance of common debt should be criteria-based and phased, whereby progress in the pooling of decisions on budgets would be accompanied with commensurate steps towards the pooling of risks," said the report.
"Several options for partial common debt issuance have been proposed, such as the pooling of some short-term funding instruments on a limited and conditional basis, or the gradual roll-over into a redemption fund," it said.
"Different forms of fiscal solidarity could also be envisaged," said the document which will form the basis of euro zone talks towards a full fiscal union.
0 comments:
Post a Comment