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Eurobonds in sentence

237 examples of Eurobonds in a sentence

Do you think this could delay the introduction of Eurobonds – which, if I am correct, you support – as a possible solution to remedy the current discrepancies among rates in Europe.
So the securitization of SME loans could be an indirect route to Eurobonds.
Additional plans aimed at increasing eurozone countries’ accountability and effectiveness have followed, including a Europe-wide banking union, a common eurozone budget, limited debt mutualization (such as Eurobonds), and even a eurozone parliament separate from the existing European Union parliament.
There are many who would solve the problem by routing more and more cheap credit through public channels – bailout funds, eurobonds, or the ECB – from the eurozone’s healthy core to the troubled South.
Investment guarantees will lead, via issuance of Eurobonds, to socialization of the risks inherent in public debt.
Since these claims would probably be lost should the euro collapse, the political pressure to give way finally to Eurobonds is becoming overwhelming.
That distortion will become apparent even within the countries that benefit from the additional credit, because Eurobonds will, for the time being, provide security only for government debt.
In Germany, in particular, enormous resistance will build up if the country – via the introduction of Eurobonds – is driven back into the crisis that it underwent as a result of the interest-rate convergence that followed the introduction of the euro.
The most effective solution would be to issue jointly and separately guaranteed eurobonds to refinance, say, 75% of the maturing debt, as long as Greece meets its agreed-upon targets, leaving Greece to finance the rest of its needs as best it can.
Moreover, the European Central Bank pledged to protect these countries from default free of charge through its “outright monetary transactions” (OMT) scheme – that is, by promising to purchase their sovereign debt on secondary markets – which functions roughly as Eurobonds would.
Bailout funds and Eurobonds were an invitation to moral hazard.
Why Eurobonds are Un-AmericanBRUSSELS – The emerging consensus in Europe nowadays is that only “debt mutualization” in the form of Eurobonds can resolve the euro crisis, with advocates frequently citing the early United States, when Alexander Hamilton, President George Washington’s treasury secretary, successfully pressed the new federal government to assume the Revolutionary War debts of America’s states.
But a closer look reveals that this early US experience provides neither a useful analogy nor an encouraging precedent for Eurobonds.
The eurozone crisis could certainly be resolved if all existing public debt were transformed into 20-year Eurobonds with a yield of 3%, and a five-year grace period on debt service.
For African countries, the terms would be better than those provided by Eurobonds.
Ideas such as Eurobonds, a single European finance ministry, and increased capitalization of Europe’s common rescue funds (the European Stability Mechanism and the Single Resolution Mechanism) are not even being contemplated.
Given that the eurozone lacks any supra-national fiscal backstop, such as a lender of last resort or a debt-mutualization mechanism like Eurobonds, the home-country bias can be expected to intensify whenever an economy experiences a significant shock.
ESBies would effectively fulfill the role of Eurobonds, but without the joint and several liability that would demand treaty changes.
4.Explore options for Eurobonds.
For example, the monetary union needs a real banking union – including not just common supervision, but also common deposit insurance and a common resolution mechanism – and Eurobonds, or some similar vehicle for mutualizing debt.
For example, I would wager that if France had done more to challenge Germany’s opposition to Eurobonds, anti-European populists on both the left and the right would not have gained the political momentum that they have in recent years.
Other crisis countries in the eurozone have not been stabilized, because Germany – fearing a domestic political backlash – has not dared to embrace a community of liability by issuing Eurobonds, even if the European Financial Stability Facility’s new role means that virtually 90% of the path has already been traveled.
Ultra-low interest rates have also created such a scramble for higher yields that even a poor, mismanaged country like Tajikistan can sell Eurobonds.
It means that some portion of members’ debts will be mutualized: individual governments’ debts would become Eurobonds, and thus a joint obligation of all members.
The Commission (or Treasury) would then decide how many additional Eurobonds to issue and on whose behalf.
This would be tantamount to a fiscal union, which could be empowered to issue Eurobonds, coupled with ex ante control of the issue of public debt.
This would be the prelude to the establishment of a full political union and the introduction of Eurobonds.
Disagreement over Eurobonds exemplifies the European Union’s current dilemma.
Europe is not a federal state, but the eurozone’s resilience would be greatly boosted if deposit insurance were pooled – which would obviously require changes in banking supervision – and if banks diversified their bond holdings so that they were more representative of the eurozone as a whole (through Eurobonds, for example).
It will have to be guaranteed jointly and severally – and that means eurobonds in one guise or another.
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