A crack has emerged in the German fiscal armour as Wolfgang Schäuble says Berlin is willing to negotiate on euro bonds. Just one day earlier Angela Merkel decisively ruled out euro bonds for "as long as I live."
German Finance Minister Wolfgang Schäuble has indicated Berlin is willing to negotiate on euro bonds but must have fiscal union as pre-condition. The Guardian reported that he insists a "European budget czar" would be part of the terms.
Although Schäuble's remarks mean little at this time in light of European political and fiscal unity remaining a German pipe-dream, they come at an interesting time. Only yesterday German Chancellor Angela Merkel emphatically stated that there would be no euro bonds "as long as I live" Der Spiegel reported. Her statement left some German politicians wishing Merkel a long life.
As European ministers gather in Brussels for the two-day summit Reuters reported a German government source revealed that the meeting "would produce no detailed decisions" and little progress is expected to be made on the euro crisis.