Euro sovereign bonds would end the crisis argues Luxembourg´s PM and Italy´s FM

Discussion in 'Wall St. News' started by ASusilovic, Dec 5, 2010.

  1. In spite of recent decisions by European fiscal and monetary authorities, sovereign debt markets continue to experience considerable stress. Europe must formulate a strong and systemic response to the crisis, to send a clear message to global markets and European citizens of our political commitment to economic and monetary union, and the irreversibility of the euro.
  2. However, Germany’s Wolfgang Schäuble – on Monday named as the FT’s European finance minister of the year – said in a video interview that jointly guaranteed bonds would require “fundamental changes” in European treaties. He added that it was also key that governments had incentives to maintain discipline over finances – and faced sanctions when they did not. “Otherwise the euro would fail,” he warned. Germany also fears the issuance of joint bonds would raise its borrowing costs.
  3. The other Wolfgang:

    Wolfgang Munchau: Europe is edging towards the unthinkable