Europe’s Bondholders Shouldn’t Share Bailout Cost, Denmark Says

Euro-area senior bondholders shouldn’t have to share the cost of bailing out the region’s most indebted members as the onus is on governments to rein in budgets and reassure investors, Danish Finance Minister Claus Hjort Frederiksen said.

“It’s important that the countries consolidate in a convincing way to tell the markets that they are on the right track,” Frederiksen said in an interview in Copenhagen yesterday. Asked whether Europe should force debt investors to foot part of the bill on subsequent bailouts, he said: “I don’t think so, frankly.”