Tuesday, 16 August 2011

Debate Over Eurozone Bonds Rages

There is growing opinion across Europe that so-called Eurobonds are the bold step needed to tackle the financial crisis.

The principle behind a common government bond is that Eurozone countries would guarantee each other's debts.

Investors would see the bonds as safe and would loan money at low interest rates. The hope is that the lower borrowing costs would prevent any more financial bailouts.

But the eurobond has its critics.

Al Jazeera's Tim Friend reports.