IMF : Time for Germany to accept eurobonds

Germany should give up its dogged opposition to eurobonds now that all EU members have signed a fiscal treaty, the International Monetary Fund's chief economist said. "When there was no fiscal treaty nor budgetary and budgetary discipline instruments, the Germans had good reason to reject bearing the brunt of irresponsible policies by other states," Olivier Blanchard told the Monday edition of Financial Times Deutschland. "But now we have a fiscal treaty. The Germans should accept that the eurozone is going by way of eurobonds," he added. Introducing eurobonds would allow embattled governments to borrow from financial markets more easily by having their debt guaranteed by fellow EU members. German Chancellor Angela Merkel has adopted a hard line against eurobonds, arguing that Germany -- Europe's largest economy and the state with the lowest borrowing costs -- would pick up the tab if eurozone debt were pooled.