German Finance Minister Wolfgang Schaeuble said the euro’s stability depends on making investors pay for future debt crises, brushing aside warnings that Germany’s demands are hurting Europe’s most indebted countries.
“Participation of the private sector is a central element of the mechanism,” Schaeuble said in a speech at the Sorbonne University in Paris late yesterday. “I would like to remind those who still have problems with such a crisis resolution mechanism that the currency union was never designed as a model for the enrichment of financial speculators.”
Irish bonds fell for a seventh day, sending the 10-year yield to a euro-era record.
Greek bonds were little changed after a run of seven straight declines, the longest losing streak since April.
The debt mechanism intended to replace the euro fund when it expires in three years “needs a clear legal basis” in EU treaties, Merkel said.
Source: Bloomberg Nov 3, 2010
A treaty change will be rammed through under Article 48 of the Lisbon Treaty,
a trick that circumvents the need for full ratification.
Ambrose Evans-Pritchard 31 Oct 2010
Det finns egentligen inte någon Eurokris.
Tvärtom tvingar euron fram reformer som sedan länge varit nödvändiga, vilket alltid har varit ett av de starkaste argumenten för en gemensam valuta.
Stefan Fölster, Magasinet Neo 2010-06-15