What will eurobonds cost?

From the perspective of the euro area countries with low credit ratings, the call for eurobonds is understandable since the associated nominal interest-rate convergence would result in a significant fall in the interest rates of the troubled countries. In return, Germany could expect significantly higher interest costs than before if in future it were to issue eurobonds instead of German government bonds. In light of the expected additional costs the Ifo Institute advises against the introduction of eurobonds.