Proposals for euro wide government bonds would leave more prudent countries such as Germany funding countries like Italy and mean there would be no incentive for fiscal reforms in countries whose budget deficits have ballooned, Deutsche Bank Chief Executive Josef Ackermann said on Sunday.
I do not think eurobonds would be a good solution, yet, he said in a speech on global financial regulation in Seoul.
An EU official told Reuters last week the European Commission will propose on Wednesday much tighter control of euro zone countries' budgets and closer economic monitoring which, if proven to work, could lead in a few years to some form of eurobonds.
Ackermann told the audience of bankers and academics in Seoul that he believed that a reformist new government in Italy was capable of taking action needed on the budget and if it did, the country would be able to return to financial markets.
Italy can get its house in order and will be able to raise funds.
Italian borrowing costs have surged to unsustainable levels above seven percent in recent weeks although they had fallen back sharply by Friday.
Ackermann reiterated his opposition to the European Central Bank undertaking quantitative easing measures, saying that fighting inflation remained a major concern, especially for German voters.
(Reporting by Ju-min Park; Editing by David Chance)