The 17 euro nations should jointly issue debt to cut borrowing costs and adopt more pro-growth policies to combat the region’s debt crisis, French European Union Affairs Minister Bernard Cazeneuve told newspaper La Stampa.
The disagreement between France and Germany over whether to jointly sell debt centers on when to introduce the securities and not whether to sell them, Cazeneuve told the Italian newspaper. France wants to begin the process now as a way to overcome the debt crisis, while Germany would back the bonds once conditions improve as a way to signal that Europe has overcome the crisis, he said in the interview.
French President Francois Hollande has been so outspoken on the need for more policies to stimulate growth because without more economic expansion, European democracy may be threatened by the radical and populist forces that have gaining support during the debt crisis, he told La Stampa.
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