IS THE IDEA OF THE COMMON EUROBONDS ISSUANCE IN THE EUROZONE SUSTAINABLE?
Faculty of Economics & Business, University of Zagreb
Although the concept of common Eurobonds issuance in the Eurozone was intensively considered during and after the euro area debt crisis, the proposals for implementing this idea appeared earlier, i.e. they have been presented since 1993 to the present day. By considering about fifteen proposals, as well as the expected economic effects of the implementing idea and the fulfillment of legal and political conditions for implementing the idea of the common Eurobonds issuance in the Eurozone, the author tends to answer the question: Is the concept about the common Eurobonds issuance in the Eurozone sustainable? The author concludes that the idea of the common Eurobonds issuance in the Eurozone is not possible in existing conditions, given that numerous proposals presented so far make the idea highly controversial and the possible bi-directionality in manifesting the economic effects and the political opposition additionally make the controversy stronger. However, the idea could be sustainable in the future if fiscal integration and political union in the euro area became strong.
Eurobonds, common Eurobonds, Eurobonds issuance, Eurozone Eurobonds