Publication
6 Dec 2010
This commentary argues that troubled eurozone nations should simultaneously open restructuring talks while continuing to service their debts normally. Germany, France and other core eurozone nations would have to stand ready to recapitalize the banks most exposed to the restructured debt. The ECB would then stabilize the banking system and the EFSF would stabilize sovereign debt. This big bang could be prepared in a weekend; the market already seems to be pricing it in.
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English (PDF, 5 pages, 266 KB) |
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Author | Daniel Gros |
Series | CEPS Commentaries |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2010 Centre for European Policy Studies (CEPS) |