Tremonti calls for euro bonds again

CERNOBBIO: Italian Economy Minister Giulio Tremonti repeated his call for jointly issued euro bonds on Sunday, warning that there would otherwise be big problems for the euro zone.

"The euro bonds will absolutely be done," he told a business conference in the northern Italian town of Cernobbio. "Either we do euro bonds or we will have critical problems."

The idea has been strongly opposed by Germany, which fears that they would push up its borrowing costs and reduce incentives for weaker economies such as Greece and Italy to reform their economies.

Copyright Reuters, 2011