A eurobond that would have financed additional public spending, and avoided increasing countries public debt, would have demonstrated solidarity between eurozone countries, in the opinion of Patrick Artus from Natixis.
Key quotes
“In order to prevent a peripheral sovereign debt crisis in the eurozone associated with widening of yield spreads on these bonds, the choice made was a monetary response: the possibility for the ECB to specifically buy the government bonds of troubled countries.”
“This decision will eliminate the risk of a debt crisis, but will lead to even greater excess liquidity.”
“Another strategy was possible: to issue eurobonds that finance the additional fiscal deficit of all countries.”
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