Currently there is discussion over Eurobonds, which France supports and Germany rejects.
Basically, those in the currency union will have a central banking entity to issue a single set of bonds used by all Euro members. This way debt/risk is pooled and there's a single interest rate between all members.
So I'd like to open the floor on how you think it should be implemented.
My personal opinion is that I think if you're going to have a currency union, you should also have a bond union. It doesn't make sense to have varying interest rates and nationally controlled debt levels and expect the currency to function properly. The current debt woes in Europe are partially, in my opinion, due to the inability of the European banking authority to restrict debt levels via control over the issuance of Euro-based bonds. I'm rather disappointed by the German government's blanket opposition over the issue.
edited 27th Jun '12 2:09:28 PM by breadloaf