BRUSSELS (AP) — The European Commission, the EU executive, believes that the joint issuing of eurobonds by the 17 euro nations would be the most effective way to tackle the financial crisis, according to a draft paper seen Monday.

The study by the European Commission, the EU's executive branch, will be presented Wednesday and could intensify a rift with Germany, which rejects eurobonds as a viable option at the moment because it would expose its taxpayers to weaker countries' bad debt. Germany already funds the bulk of the existing bailouts.

The draft, published by the Financial Times and confirmed by the Commission, said replacing national bonds with one jointly-backed bond would have to be matched by tight financial and budgetary coordination. It also says discipline would be needed to make it impossible for profligate nations to live on the back of budget-conscious member states.

Since Greece pushed the eurozone into its ever-worsening financial mess last year, many member states have seen their cost of government borrowing rise to record levels. Germany's borrowing rates, meanwhile, have dropped sharply as investors buy up its bonds as a safe haven. That has created a huge imbalance in debt markets within a zone ruled by one currency.

Germany has long been reluctant to bail out member states like Greece, Ireland and Portugal, insisting it was up to their governments to live by sound economic principles and win investor confidence.

Early Monday, the German government made clear that it wasn't budging on its opposition to the idea of eurobonds as a quick-fix solution to the crisis.