More Big EU Weekend News: Eurobonds and Fiscal Union?

       As if the Spanish bailout wasn't enough there seems to be a push in a direction Germany had said would never happen-could they be learning something? You'd like to think so. This country has learned to accept rather than deny its WWII and Holocaust guilt, this comparatively should be much easier.

      "German news magazine Der Spiegel reported on Saturday that leaders of European institutions are working on a comprehensive plan to rescue the euro that would include the issuance of joint Eurobonds—a move Germany has repeatedly rejected."

       http://www.cnbc.com/id/47755009

      The tighter fiscal union is the sweetner Germany wants to make it more palatable as it was so categorically opposed to eurobonds.

      "The news magazine said European Union Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, Eurogroup head Jean-Claude Juncker and European Central Bank President Mario Draghi are working on plans for a "genuine fiscal union" in which individual member states would no longer be able to independently take on new borrowing."

        Still the fiscal union will be really difficult to accept as  well it means abdicating parts of a national government's decision making to EU institutions.

         "Governments would only be able to decide how to spend money that is covered through their revenues, Der Spiegel reported. Any country that needs more money than it takes in would have to report that need to the group of euro finance ministers."

         "The magazine quoted four high-ranking EU planners saying this group of finance ministers would then decide which financial desires at which levels were justified and would then issue joint euro bonds to finance these new borrowing needs."

          "Der Spiegel noted that the model would in effect be headed towards collective liability that the German government has until now repeatedly rejected."

          "The reported added that the new collective debt issuance would only apply to new borrowing while existing loans would have to be covered by the individual member states."

           Going to be interesting to see when US futures open in a few hours along with the Asian and European markets.