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

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.

http://www.ft.com/cms/s/0/540d41c2-009f-11e0-aa29-00144feab49a.html#axzz17HlME1lx

 

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.

 

The other Wolfgang:

Wolfgang Munchau: Europe is edging towards the unthinkable

 

Wolfgang Münchau tends to think and write in extremes...it sells better....