Faculty of Economics and Business Administration Publications Database

Euro Bonds Won’t Cure What Ails Europe

Kotz, Hans-Helmut
Leuz, Christian
Month: September
Link External Source: Online Version
Year: 2011
Abstract: In recent weeks, euro bonds have gained traction in policy circles as the solution to the sovereign-debt crisis.The proposed debt could be structured in different ways, but in all cases it would imply joint and severally issued obligations by the members of the euro zone and would fundamentally change the fiscal operations of the union. Given their permanent nature and lasting impact, euro bonds shouldn’t be considered merely as a way to contain the current crisis, but also as a tool to prevent future outbreaks. They would fare poorly in both tasks.