Beatrice Weder di Mauro, an economics professor at the University of Mainz and former adviser to the German government, said in a guest commentary in the Handelsblatt newspaper that euro bonds are not necessary to solve Europe’s debt crisis.
Euro-zone rules shouldn’t allow the 17 members of the currency bloc to issue common debt, Weder di Mauro writes in today’s edition. A better solution is to introduce an insolvency and restructuring mechanism for banks and sovereigns, and bridge financing with time limits and conditions attached, she said.
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