German Chancellor Angela Merkel has dug in her heels against the idea of common euro bonds, saying they are not the answer to Europe's sovereign-debt crisis. Merkel told the German parliament that the country will not succumb to pressures from Italy, Luxembourg and other countries interested in issuing joint bonds. "Europe needs to talk about deeper political and economic integration in a way that combines solidarity and improvement of competitiveness," she said. "The euro zone needs more harmony and competitiveness rather than common euro-zone bonds."

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