The road to common euro zone bonds was cut by the German Chancellor Angela Merkel saying that she won't let financial markets dictate policy.
Merkel said that European Union treaty changes that would take years are required to the joint euro bonds and might run afoul of Germany's constitution, as euro bonds are not the answer right now at this time, as they would further undermine economic stability while common borrowing might arrive at some point in the distant future.
Merkel said in an interview with ZDF television in Berlin yesterday At this time -- we're in a dramatic crisis -- euro bonds are precisely the wrong answer, they lead us into a debt union, not a stability union. Each country has to take its own steps to reduce its debt.
Since returning from her summer vacation last week, Merkel has stepped up her opposition to euro bonds, making resistance to common European borrowing a campaign theme of the elections on September 4 in Mecklenburg-Western Pomerania her home state.