German Chancellor Friedrich Merz reiterated on Thursday that he will not support the issuance of joint European government bonds, repeating his stance after a meeting of European Union leaders that focused on commitments to enhance the bloc’s border-free internal market.
Speaking at a press briefing after the session, Merz said: "This morning I was very clear in what I said, that although there may be different opinions, I will not support the idea of euro bonds." His comments came in the context of broader EU discussions where leaders agreed on measures intended to improve conditions within the single market.
Merz also highlighted legal constraints facing a German government on the matter, noting that Germany’s Constitutional Court has set tight limits on what steps Berlin could take with respect to such financial instruments. He emphasised these judicial boundaries as a factor shaping his position.
While he rejected the concept of euro bonds, Merz indicated an area of agreement with France. He said both countries see a need to protect European markets against unfair trading practices, signalling convergence on trade policy even as they diverge on the question of joint debt issuance. The chancellor framed this alignment on market protection as separate from the disagreement over shared borrowing.
The remarks leave clear differences among EU policymakers on whether pooled borrowing should be pursued, while also underscoring points of consensus on preserving the integrity and fairness of European markets. Merz’s statement reiterated his personal and institutional reluctance to endorse euro bonds and cited judicial constraints that would limit Germany’s ability to participate in such instruments.
Details released after the leaders’ meeting focused on commitments to strengthen the border-free internal market, but the chancellor’s comments made plain that unanimous support for joint borrowing is not forthcoming from Berlin. At the same time, the noted agreement with France on defending market fairness illustrates that trade policy and debt policy remain distinct topics in the bloc’s ongoing discussions.