German Vice Chancellor Philipp Roesler on Saturday called a proposal by the European Commission last week for joint debt issuance "irresponsible" and said Berlin will remain firm in its rejection of euro zone bonds, according to Reuters. Roesler, also Economy Minister, said in a radio interview that European Commission President Jose Manuel Barroso made a mistake last week by suggesting euro zone bonds could be issued once new, intrusive laws to ensure budgets of euro zone countries do not break EU rules are in place. Roesler, leader of the Free Democrats (FDP) junior coalition partners to Merkel's conservatives, said joint bond issues would be wrong for Germany and Europe because they would ease the pressure on indebted countries to reduce their deficits. He did not mention a main concern in Berlin, that euro zone bonds would raise Germany's borrowing costs. Germany has benefited from the crisis so far because the flight to quality has allowed it to refinance itself more cheaply. Yields on German bonds, considered the safest in the euro zone, have fallen to record lows in recent months. Roesler was echoed on Saturday by Hans Michelbach, a leader in the Christian Social Union in parliament. He said Barroso is raising the false impression that Europe does not have confidence in its own rescue measures. Roesler said Germany sought greater stability with more budget discipline in the euro zone. -- SPA
