Eurobills Depose Common Bonds as Crisis Fix: Euro Credit

German opposition to euro countries becoming responsible for each other’s debts is being tested by proposals for a program of European bill sales that would mirror the U.S. Treasury market.

Eurobills would be “a very good first step” toward common euro-region bonds, Olivier Blanchard, chief economist at the International Monetary Fund, said in Washington last week. Securities maturing in a year or less would pose “very little risk for the participating countries,” he said.