Bruegel - The Brussels-based think tank Debt restructuring in the euro area: A necessary but manageable evil?
Informe Instituto Bruegel sobre reestructuración deuda griega:
The Blue Bond Proposal
by Jakob von Weizsäcker, Jacques Delpla on 6th May 2010
Soaring debt levels and the crisis in Greece has sharpened the focus on fiscal sustainability among eurozone members. The European Union has to tackle high debt levels in vulnerable states which are compounded by a hike in risk premiums on government bonds leading to a debt trap, while designing ways to efficiently finance debt. Furthermore, European solidarity with weaker states should not undermine incentives for individual members to pursue fiscally sustainable policies. This Policy Brief proposes a Blue Bond to resolve these challenges. The authors, Bruegel Research Fellow Jakob von Weizsäckerand Jacques Delpla Propuesta de bonos azules (Instituto Bruegel)