UK, Germany on EU debt crisis

Britain's Deputy Prime Minister Nick Clegg warns a Greek exit from the eurozone could have drastic consequences for all of Europe. Clegg is in favor of the idea of eurobonds, an idea in which every eurozone country could borrow funds at the same rate, lowering the costs for more indebted countries. But German Foreign Minister Guido Westerwelle has been firmly pitted against the idea as a short-term fix to the debt crisis.

Clegg said, "How you do it is a different issue, I agree we shouldn’t get fixated on Euro bonds as such, but we need to create a new future a vision for the eurozone where the strong countries, particularly northern Europe who’ve kept control of their public finances, who’ve invested into their future, who are successful exporting countries, can continue to do so but in a way which is in partnership with countries which have consumed too much and racked up too much debt particularly in southern Europe. In other words what we need is a new grand bargain if you like between north and south, between creditor and debtor countries between exporting and consuming countries."

Westerwelle said, "About Euro bonds we think that we cannot solve a debt crisis by making it easier to take up new debts. And if we allow to make it easier to take up new debts we do not solve the crisis. From our point of view we increase the difficulties and the problems we have."