An options paper for reshaping the euro zone leans toward mutualizing debt and doesn’t say enough about imposing stricter controls on national budgets, said German Deputy Foreign Minister Michael Link.
“Parts of it read like a wish list,” Link told reporters before a meeting of European affairs ministers in Luxembourg today. “The report is important but it isn’t a decision.”
The report -- co-authored by European Union President Herman Van Rompuy, European Commission President Jose Barroso, European Central Bank PresidentMario Draghi and Luxembourg Prime Minister Jean-Claude Juncker -- was sent to national capitals early today.
The proposals lean “toward various models for mutualizing debt. What comes up short is improved controls,” Link said. “We’re not convinced that mutualization of debt is a way out of the crisis.”
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