Introduction

Saul Loeb/Agence France-Presse, via Getty Images

France’s new president, François Hollande, is pushing for the E.U. to issue euro bonds on behalf of the entire bloc. This would lower borrowing costs for the periphery states like Greece and Spain that are struggling, but it would raise costs for the stronger nations — especially Germany, whose reputation with investors could suffer because it would be on the hook for the struggling states’ debt.

Would the issuance of euro bonds help to solve the Continent’s debt crisis, or simply spread the pain to the stronger nations?