Dutch Finance Minister on the Debt Crisis
By Christian Reiermann
SPIEGEL: Minister, an increasing number of voices in the EU are calling forDe Jager: No, absolutely not. Euro bonds are not the solution. You cannot end a debt crisis by introducing a new form of debt. Instead, the countries concerned have to tighten up their budgets and introduce reforms to get their economies back on track. Euro bonds are no alternative -- on the contrary, they would have a perverse effect. to be used to end the crisis in the euro zone. Are you among these advocates?
SPIEGEL: How so?
De Jager: Euro bonds remove every incentive for ailing countries to return to sensible fiscal and economic policies. Since they offer lower interest rates than their previous government bonds, they induce governments to run up more debt instead of saving. I call that perverse.