Guido Tabellini, (2017), “Reforming the Eurozone: Structuring versus restructuring sovereign debts”, VoxEU, 23 Νovember
In the debate on European reforms, a sovereign debt restructuring mechanism for the Eurozone is often proposed. This column argues that such a mechanism is not required. Instead, Eurozone member states should issue GDP-linked bonds, which would enact an implicit seniority structure on their sovereign debt and make the Eurozone more resilient to the next crisis.
Relevant Posts
- ECB, (2017), “Structural reform needs in the euro area: insights from a survey of large companies”, Economic Bulletin Issue 66, September 2017
- Gregory Claeys, (2017), “The missing pieces of the euro architecture”, Bruegel, 26 October