Why merkel doesnt want eurobonds

Nevertheless, the euro rose against the dollar in Asia on Thursday ahead of the European summit. It will also discuss moves towards integrating eurozone structures, which may lead to more Franco-German spats as well as annoying British eurosceptics.

Daily newsletter Receive essential international news every morning. The content you requested does not exist or is not available anymore. Listen to RFI. The German government simply sticks to its principle of strict conditionality," said the analyst. Another economist, Holger Schmieding from Berenberg Bank, pointed to another constraint on Merkel -- the German constitutional court that has shown itself increasingly wary of transferring more powers to Brussels.

For the moment at least, Merkel appears to have got her way. The issues of eurobonds and the bailout pot directly funding banks were swept under the carpet at a recent mini-summit of the eurozone's top four leaders in Rome. And even the prime minister of France, the leading advocate of eurobonds, acknowledged in a recent media interview that mutualising debt needed deeper political integration that would take years.

Germany's influential Bild daily, the most widely-read paper in Europe, pointed to another reason Merkel is unlikely to bend on eurobonds -- the country's own debt mountain that recently topped two trillion euros. Daily newsletter Receive essential international news every morning.

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