Europe need not wait for Germany – FT.com

Replacing all national sovereign bonds (although not loans) with common eurobonds would create a market worth €5,500bn. It would be backed by governments that together owe less debt, run a lower combined deficit and have greater tax-raising capacity than the US and Japan. It would almost certainly lead to lower yields than the current eurozone average and virtually eliminate the possibility of a bond buyers’ strike.

via Europe need not wait for Germany – FT.com.

Creating a common Eurobond would make economic sense but is politically unachievable because of opposition in Germany. Convincing Germans that it is in their best interests will test Angela Merkel’s leadership abilities to the full.

2 Replies to “Europe need not wait for Germany – FT.com”

  1. So the Fourth Reich will succeed to conquer and dominate Europe where the Third Reich failed – this should provide some spectacular interest in the coming months and years.

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