Eurobonds
in sentence
237 examples of Eurobonds in a sentence
So far, we've thrown economics at the problem, actually mostly austerity, and certainly we could have designed alternatives, a different strategy, a green stimulus for green jobs, or mutualized debt,
Eurobonds
which would support countries in need from market pressures, these would have been much more viable alternatives.
Guy Verhofstadt, leader of the Alliance of Liberals and Democrats for Europe in the European Parliament, is only one in a growing chorus of voices calling for the creation of
Eurobonds.
And issuing
Eurobonds
would require a degree of political consensus that will take months, if not years, to construct.
And now European Council President Herman Van Rompuy, backed by most of the troubled eurozone countries, is again proposing
Eurobonds
and debt-mutualization schemes.
European Central Bank purchases of periphery countries’ debt already constitute an implicit subsidy, and discussion of
Eurobonds
is heating up with Macron’s victory.
The most radical way to break this vicious circle would be to introduce
Eurobonds.
This is why market participants like to repeat that only
Eurobonds
will end the crisis.
But
Eurobonds
would also create huge incentive problems, because debtors in the eurozone periphery would no longer have to fear any punishment by markets and might thus be induced to consume and invest too much.
For starters, lower interest rates that follow from
Eurobonds
or some similar mechanism would make the debt burden manageable.
While Merkel opposes Hollande’s proposal to create
Eurobonds
with a view to financing industrial projects, they cannot afford to waste time in reassuring jittery markets with a message of cohesion.
It can be summed up in one word:
Eurobonds.
If countries that abide by the EU’s new Fiscal Compact were allowed to convert their entire stock of government debt into Eurobonds, the positive impact would be little short of the miraculous.
In accordance with the Fiscal Compact, member countries would be allowed to issue new
Eurobonds
only to replace maturing ones; after five years, the debts outstanding would be gradually reduced to 60% of GDP.
To be sure,
Eurobonds
are not a panacea.
The boost derived from
Eurobonds
may not be sufficient to ensure recovery; additional fiscal and/or monetary stimulus may be needed.
More troubling,
Eurobonds
would not eliminate divergences in competitiveness.
But Germany’s acceptance of
Eurobonds
would transform the atmosphere and facilitate the needed reforms.
Unfortunately, Germany remains adamantly opposed to
Eurobonds.
The German public does not recognize that agreeing to
Eurobonds
would be much less risky and costly than continuing to do only the minimum to preserve the euro.
Germany has the right to reject
Eurobonds.
If Germany is opposed to Eurobonds, it should consider leaving the euro.
Surprisingly,
Eurobonds
issued by a Germany-less Eurozone would still compare favorably with those of the US, UK, and Japanese bonds.
Their debt would diminish in real terms and, if they issued Eurobonds, the threat of default would disappear.
There is a strong case for Germany to decide whether to accept
Eurobonds
or leave the eurozone, but it is less obvious which of the two alternatives would be better for the country.
They would discover that the cost to Germany of authorizing
Eurobonds
has been greatly exaggerated, and the cost of leaving the euro understated.
Europe would be infinitely better off if Germany made a definitive choice between
Eurobonds
and a eurozone exit, regardless of the outcome; indeed, Germany would be better off as well.
Europe’s Small Steps and Giant LeapsBRUSSELS – The world was expecting
Eurobonds
to come out of last week’s Franco-German summit; instead, the eurozone will get economic governance.
According to German Chancellor Angela Merkel and French President Nicolas Sarkozy, the great leap forward to the creation of
Eurobonds
would perhaps be the culmination of that process, but for the moment small steps remain the order of the day.
Issuing
Eurobonds
would mean replacing the current eurozone strategy of “every man for himself” with one based on the principle “all for one and one for all,” which would enable joint borrowing by euro countries.
In other words, issuing
Eurobonds
entails setting up a federal system of government, one recognized as such by Europe’s states and peoples.
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