Olli Rehn: euro zone bonds attractive

The idea of euro area bonds is intellectually attractive but the European Financial Stability Facility is the mechanism for handling economic crises, the EU commissioner for monetary affairs said on Monday.

Speaking ahead of a meeting of euro zone finance ministers, Olli Rehn highlighted the fact that the 16 countries in the euro zone had decided in May to create the EFSF in order to tackle the debt crisis. They had rejected euro zone bonds, he said.

"Euro-bonds is an old concept and there has been a long debate over a decade," he told reporters.

"I find the idea intellectually attractive. However, I may recall that the Commission made a proposal in May on a community instrument for financial stability which was based on member states loan guarantees…. As far as I understand that is the state of play for the moment."

He added: "Having said that, we always study very carefully all proposals from member states."

Asked if there is a need to upgrade the EFSF, he replied: "This is going to be one of the issues to be discussed at today's meeting."