There’s a rumour circulating that Germany could be warming to the idea of eurobonds, bringing markets off lows.
But let’s not be too hasty here—there’s nothing to celebrate.
The only positive word we’ve heard out of Germany today is from Finance Minister Wolfgang Schaeuble, who said that if the eurozone adopted a plan for eurobonds, “of course, the situation on financial markets would calm down for a couple of months” (via WSJ).
Taken by itself, this suggested that Germany was somewhat more open to the eurobond idea. That sparked a flurry of optimism over Twitter. But don’t be fooled.
He followed that statement by saying, “Therefore, we won’t go down that path.”
Not so cheery after all.
UPDATE: There are also rumours that German newspaper Bild will publish a full report tomorrow that German Chancellor Angela Merkel’s coalition no longer categorically opposes eurobonds. We’re sceptical about this one too, but hey—who knows?