Skip to content
Subscriber Only

France Backs Germany Rejecting More Aid, EU Bonds

France backed Germany in refusing to add to the European Union’s 440 billion-euro ($581 billion) rescue fund and rejecting joint euro-area bonds, deepening bloc-wide divisions before next week’s summit of EU leaders.

Proposals aired by Italy and Luxembourg for euro-area bonds raise issues of moral hazard as well as how to share costs and gains, a French government official said in Paris today. The fund is adequate to deal with any eventual demands made on it, the official told reporters on customary condition of anonymity.