French Finance Minister Pierre Moscovici said in Berlin on Tuesday the euro zone should take the first steps towards some kind of mutualisation of its debt, though he recognised that Angela Merkel's government rejected jointly-issued "Eurobonds".
"We are not talking any more about Eurobonds. I know it is a red line here in Germany, for some, the present government among them," the French minister said at a conference alongside his German peer Wolfgang Schaeuble.
"What I mean is that we need to address together the debt issue, and this must be backed by all 17 members of the euro zone, in order to pool some short-term sovereign funding instruments to build a first step towards some kind of mutualisation of the debt," said Moscovici, speaking in English.
(Reporting by Stephen Brown and Annika Breidthardt)