Eurobonds create moral hazard  The policy proposed will shift responsibility for bad economic decisions and create moral hazard due to the lack of accountability. If the European Union decides to introduce bonds with the same interest rate for all countries, everyone in the union will have to suffer for the mistakes made by Ireland, Greece, Spain, Italy or Portugal (or any other state that may make them in the future). The burden will be shifted to the whole union in the form of higher interest rates for the prudent and countries that made mistakes in the past will pay no price for their economic instability and poor decision-making. This situation will happen if the Eurobonds indeed function as they are planned to and the interest rates will be kept low by comparison to the current rates for Greece, Italy etc. More than that, this situation will lead to what economist call the moral hazard. Moral hazard appears where a person, institution or national government in this case is not made responsible for past actions and so does not change their ways in response; insulating someone from the consequences of their actions takes the learning out of their actions. If countries in distress are not made responsible for their irrational spending made in the past (not just governments but also having trade deficits, banks too willing to lend etc.), there is no reason why these countries should alter their approach to the economy. Accountability to the market is what will resolve the economic crisis and prevent another. This can only be done without Eurobonds.