Saturday, July 16, 2011

EUROBONDS OR THE EΝD OF THE EURO

''.. Soon though the euro zone may well have to expand the EFSF and allow it to issue jointly guaranteed “Eurobonds”.
That is a huge political leap—especially for Mrs Merkel. Germany is firmly opposed to any solution that could imply open-ended transfers to feckless southerners; so are several other northern European countries, not least because guaranteeing others may raise their own borrowing costs. It is not a pleasant option. But the alternative could be the end of the euro. That is the horrible lesson of this week..''
The Economist..

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