In previous posts here and here, I made the case for the common issuance of EU bonds and suggested also an effective way to pay the burden (at least the interest part) of such issuance via a financial transaction tax and the possible creation of a EU Monetary Fund.
This idea appears "too simple to be considered".
However yesterday, Belgium's PM Calls For European Debt Agency which would have the task to issue new debt jointly for the eurozone.
Tyler Durden at ZeroHedge.com wishes Europe all the best in the 2010 issuance of its debt.
I contend that the charts that he shows are somewhat self-explanatory and make my case of the common issuance of EU bonds much stronger and it indicates that the market is ready for it.
It's just a matter of further integration in the Eurozone and more coordination of economic policy which would support the EURO idea. As I wrote if the EURO got into troubles you need more euro coordination not less just because economists think that the eurozone is not an optimal currency area. Moreover a common issuance would avoid some sort of competition and beggar thy neighbour policy in EU member states issuance while creating a far more homogeneous and united euro bond market.