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Thoughts about Single Eurozone Government Bonds

The idea of single eurozone government bonds is doomed to fail if there is no proper political and economic coordination, unity and balance between the Union members. Do you see such coordination and unity? Modern eurozone is economic and political Frankenstein. It is said they can challenge US Treasuries and become more liquid financial instrument?

Ok, but does eurozone have the common federal budget? Is the eurozone’s economy balanced? Does the eurozone have the common economy development strategy? Any investor must be able to assess the earning power of the economy where he or she invests. Will the single eurozone allow investors to do that, without understanding the underlying economic mechanisms? The whole point is not only about how the money will be employed and who will back the cashflow, but who will repay the bonds as well.

Stop babbling that more deep fiscal union can secure tight integration of eurozone. The finance is a toolset to impose proper financial discipline, to provide proper accounting and money management approaches, etc. That’s it. It is not a toolset to compose unions. Do you see a business with dominating finance department? The business is backed by the proper business model which is hammered with the relevant business development strategy. What is eurozone’s economy integration model?

The finance is a toolset to make sure that you have enough money to finance your strategy, to ensure business durability. We use finance management to make sure that we have money to do the stuff and that our wishes are adjusted to our abilities, or vice versa. That’s it. If you do not know what you want or do not know your abilities, then you will spend the money in vain and none of the financial disciplines will facilitate the real improvement.