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FRANKFURT (MarketWatch) — François Hollande and German Chancellor Angela Merkel appeared set for a clash later this week as the new French president signaled he would make a pitch for jointly-issued euro-zone government bonds when European leaders meet.
The debate over so-called Eurobonds and other measures previously rejected by Germany, including unbridled bond-buying by the European Central Bank and allowing the euro-zone’s rescue fund to directly recapitalize banks, is expected to heat up as policy makers weigh the potential consequences of Greece exiting the shared currency, economists said.
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