A bond to narrow spreads and reduce difficulties

European bonds have to be issued in order to safeguard the stability of the Euro-zone, reconciling the strong and weak points of the individual European economies. Among the nine commitments to growth that were part of the manifesto published by il Sole 24 Ore on July 17, 2011, there was also the creation of a new type of Eurobond: an instrument that not only was able to raise funds for single projects or great infrastructure (Euro Project Bonds) but could also support Countries in difficulties and guarantee to all Governments the possibility of accessing funding on the market at acceptable costs by issuing common bonds.

The manifesto of il Sole 24 Ore gave light to a debate with a series of authoritative opinions, in favor and against, including those of Gianni Toniolo, Mauro Baranzini, Giorgio Barba Navaretti, Giuseppe Berta, Renato Brunetta, Valerio Castronovo, Roberto Perotti and Luigi Zingales.

Romano Prodi and Alberto Quadrio Curzio made a more detailed proposal that was published on il Sole 24 Ore on August 23, 2011. The creation of Euro Union Bonds, issued by a European Financial Fund (EFF), that in turn would be made up of gold reserves of the member States and by bonds and securities of state-owned companies would favor a reduction in spreads, putting a strong brake on speculation and therefore strengthening the stability of the Euro zone.

According to this proposal, the Countries undergoing difficulties could finance part of their debts with Euro Union Bonds. Also in this case, Germany's opposition and that of other "Triple A" countries has to be overcome.

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