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Germany, France Forge EU Debt-Crisis Compromise on Writeoffs

Germany and France have forged revamped crisis rules for the euro that aims to make investors share some of the burden of any post-2013 bailout, German government spokesman Steffen Seibert said.

The proposal, presented at a meeting of European finance ministers today in Brussels, would introduce “collective action clauses” for debt issued after a temporary crisis facility expires in 2013, said a French official who briefed reporters in Paris. Such clauses allow bondholders to change terms of bond contracts.