Barosso backs eurobond rescue plan

Joint eurobonds issued by the 17 euro nations are being backed by European Commission president Jose Manuel Barroso as a solution to the financial crisis, putting him on a collision course with German Chancellor Angela Merkel.

Mr Barroso said the plan makes sense if linked to fiscal rigor among the member states sufficiently stringent to make it impossible for profligate nations to live on the back of budget-conscious countries.