Eurorealist MEP Bernd Lucke has today warned of the disastrous effects of deepening the Eurozone.

Eurorealist MEP Bernd Lucke has today warned of the disastrous effects of deepening the Eurozone.

In its latest reflection paper on the future of the Euro, which was debated in the European Parliament today, the European Commission proposes how the Eurozone could be further developed. One suggestion is to create bundled government bonds. However, Mr Lucke fears these will result in easy money for weaker economies, so worsening the debt crisis.

He said “It’s like a mad Euro-Tango where everyone just gets dizzy. Common bonds will necessarily lead to massive transfers and debt collectivisation. In the end, the economic and political crisis potential will become much greater than it is at present.”

Mr Lucke, a German Professor of Economics and ECR MEP, is instead calling for a return to the original stability criteria and the no bail out rule. Also, he believes that the EU should allow Euro-States to exit from the common currency.

According to Mr Lucke, the European Central Bank should end its bond purchase programme and reinstate the disciplined interest rate mechanism. Further aid payments to support insolvent countries should be halted because they undermine reform and austerity measures.