Eurobonds even up interest rates within the Union  Introducing Eurobonds will lower interest rates for bonds issued by national governments so making the loans affordable. The most recent example of this problem is the need of recapitalization of banks in Cyprus. Although government debt and interest rates were not the direct problem if the government had been able to borrow at low interest rates to recapitalize its own banks then it would have not needed a bailout from the rest of the Eurozone. [1] In order to avoid these kinds of solutions and put people back to work in countries like Portugal, Italy or Spain, national governments need a bigger demand for their bonds so that interest rates go down.  Right now, sovereign-bonds are not affordable for the government as their interest rates are extremely high. Greece has an interest rate of 9.01%, Portugal 6.23%, and Italy and Spain near 4.30%. [2] If we choose to bundle the bonds together we will obtain a single interest rate that will lower the price of bonds and permit countries to borrow more, the price would be closer to Germany’s than Greece’s as the Eurozone as a whole is not more risky than other big economies. More than that, the markets won’t be worry anymore of the possible default of countries like Greece; as the bonds are backed up by the ECB and indirectly by other countries in the union, the debtors will know that their loans will be repaid because in the last resort more financially solvent countries take on the burden. When the risk of default is eliminated, the demand for government bonds will rise and the interest rates will go down. It is estimated that Italy could save up to 4% of its GDP [3] and Portugal would see annual repayments fall by 15bn euros, or 8% of its GDP. [4]  [1] Soros, George, ‘How to save the European Union’, theguardian.com, 9 April 2013,   [2] Bloomberg, ‘Rates &amp; Bonds’, accessed 15 October 2013,   [3] Soros, George, ‘How to save the European Union’, theguardian.com, 9 April 2013,   [4] Soros, George, ‘How to save the European Union’, theguardian.com, 9 April 2013,