The German government and the European Commission appear to be on a collision course over a long-term solution to Europe's sovereign debt crisis, with commission president Jose Manuel Barroso expected Wednesday to unveil a plan for so-called “stability bonds” issued jointly by eurozone nations.

German Chancellor Angela Merkel does not see the bonds, also known as eurobonds, as a long-term answer to the current debt crisis, and says now is not the time for the bond debate.

Leaders of the 27 EU member nations are expected to debate the eurobonds issue at a December 9 summit. Anything that requires member nations to bail out partners beyond a voluntary action would require a change to the EU's treaty.

As representatives of Europe's largest economy, German officials are nervous they will be responsible for the largest share of the bond debt.

At the German Employers Association conference, Olli Rehn, the European commissioner for monetary affairs, commented, “It is clear that any type of euro bonds would have to go in parallel, hand in hand, with a substantially reinforced fiscal surveillance and policy coordination as an essential counterpart.”

Meanwhile, the European Union bluntly told the Greek government Tuesday it would not receive its next $11 billion installment from last year's bailout unless Greece's fractious political leaders sign a written statement committing to new austerity measures to cut the country's debt. Greece needs the money to avoid a default next month, but conservative leader Antonis Samaras says his verbal consent to the unpopular austerity plan should be sufficient and has refused to sign a written pledge.

A key EU financial leader, Luxembourg Prime Minister Jean-Claude Juncker, told new Greek Prime Minister Lucas Papademos that without the written commitment, the release of the funds “of course could not take place.”

Meanwhile, the prospect of a conservative government in Spain led by Prime Minister-elect Mariano Rajoy failed to quell mounting financial market pressure on the Spanish government. Spain was forced to pay its highest interest rates in 14 years on government debt. Its rate on three-month securities topped 5 percent, more than double that from a month ago and higher than both Greece and Portugal have had to pay.