Germany Rebuffs EU Roadmap

Plan suggests EU could limit euro nations’ annual budgets and debt levels.

European proposals to reshape the crisis-struck euro area ran into immediate criticism from Germany for putting too much emphasis on debt sharing and too little on controlling national budgets.

The 10-year roadmap, released today by four officials led by European Union President Herman Van Rompuy, centered on common banking supervision and deposit insurance and a “criteria-based and phased” move toward joint debt issuance. It also suggests that the EU could impose upper limits on annual budgets and debt levels of nations that use the euro.

Joint Borrowing

Van Rompuy’s report stopped short of proposing a binding calendar for a switch to joint borrowing, saying that any debt-sharing system would have to go along with tighter management of national budgets.

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