Merkel warned over ‘worldwide recession’

GERMAN Chancellor Angela Merkel must consider joint European bonds as part of a battery of measures aimed at stamping out the debt crisis or risk a “worldwide depression”, said Germany’s BGA exporters’ association.

Policy makers should support so-called eurobonds with a “German signature” to counter a crisis that threatens the credit-worthiness of Europe’s biggest economies and the banking system, said BGA president Anton Boerner.

“If the European debt crisis isn’t brought under control, I see the danger of a recession that in the worst case could lead to a worldwide depression,” Mr Boerner said.