May 31, 2017 / 12:25 PM / 4 months ago

Germany rejects common euro zone debt after Commission paper

FILE PHOTO - An official holds a bag with the euro logo during a eurozone finance ministers meeting in Brussels, Belgium May 22, 2017. REUTERS/Francois Lenoir

BERLIN (Reuters) - Germany said on Wednesday it opposed any plans for the euro zone to issue collective debt, when asked about a European Commission paper aimed at triggering debate on a joint budget and debt and deeper EU integration around the single currency after Brexit.

“For us, at time of Brexit, it is important that the questions about developments in the currency union are seen in the framework of developments in the EU as a whole,” said a finance ministry spokeswoman when asked about the paper.

“We want no divisions between ‘ins’ and ‘outs’ - that is the euro members and other states,” she said, adding Germany is working with France on questions of the future of EU.

She said Germany would look at the Commission’s proposals and it was too early to go into individual points but Germany’s view was that Europe had to implement existing rules to boost credibility before embarking on further integration.

“Member states must ... create stability and growth in the euro zone through structural reforms and cut debt,” she said, adding diminishing risk in the financial market sector was needed “before we talk about further sharing of responsibility”.

“On the question of the mutualisation of debt, it will not surprise you that the German government’s view of rejecting euro bonds, common debt, has not changed.”

Reporting by Michelle Martin and Madeline Chambers

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