German Chancellor Angela Merkel

German Chancellor Angela Merkel has again criticized the idea of pooling eurozone debt via common euro bonds.

She told the parliament that the proposal for “eurobonds” went against Germany’s constitution.

“We are working to breach the vicious circle of piling up debt and breaking [EU] rules.”

She says a decision to issue eurobonds would “counter-productive” and leading in “the wrong way”.

“It is imperative that we don’t promise things that we cannot deliver,” Merkel stresses.

However, French President Francois Hollande believes eurobonds should be a eurozone priority for helping countries like Italy and Spain cut borrowing costs.

Spanish 10-year government bonds have been trading at yields above 6.8%, coming close to the dangerous 7%, reports BBC.

Meanwhile, it has emerged that European authorities have unveiled their vision for the future, which gives them much greater powers.

The 10-year plan is designed to strengthen the eurozone and prevent future crises, but critics say it will not address current debt problems.

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