BERLIN (Reuters) - The German finance ministry denied on Monday a media report of plans for the joint issuance of bonds by member countries of the euro zone with a triple-A credit rating.
“There are no plans for ‘Triple-A’ bonds or ‘Elite bonds’ as the article says,” said the ministry in a statement, in response to the article in Germany newspaper Die Welt.
“We are working intensively for the creation of a stability union. That is what we want to secure through treaty changes, in which we propose that the budgets of member states must observe debt limits,” said the ministry.
Die Welt said Germany was considering issuing joint bonds with five fellow triple-A rated euro zone countries — France, Finland, the Netherlands, Luxembourg and Austria — despite Berlin’s repeated rejection of the idea of collectivizing debt through such instruments.
The goal would be to stabilize the situation in the AAA countries as well as “building a credible firewall to calm the financial markets,” Die Welt said, citing diplomatic sources.
Reporting by Stephen Brown