Quite unexpectedly, the next months might provide new momentum for Eurobonds. Although political coordination in the euro area is dismal and the spirit for constructive proposal is less than optimal, a specific financial fallout of the current economic crisis – the exceptionally low level of interest rates in Germany - might play in the hands of proponents of mutual issuances of government bonds in the euro area and be a game-changer for the future of Europe. Contrary to what is sometimes assumed, the German economy does not reap only benefits from a historically low level of interest rates. In fact the current exceptional monetary circumstances represent a severe challenge for part of the German financial system and reverberates on the efficiency of the domestic savings allocation.

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