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Sovereign in sentence

1399 examples of Sovereign in a sentence

Restoring confidence in eurozone sovereign debt requires not only bank recapitalization, but also a credible, publicly-funded financial safety net that is sufficient to protect the bloc’s larger states.
The cause is excessive public and private indebtedness, coupled with the absence of an effective bailout mechanism; the effect is collapsing confidence in banks and sovereign debt.
More are likely, because the global economy is out of balance in several respects as it emerges from the crisis, particularly in terms of sovereign debt and the structure of global demand.
The financial and economic crisis is morphing into a sovereign debt crisis in advanced countries.
Severe economic distress and political pressure are buffeting relationships among citizens, sovereign states, and supranational institutions such as the European Central Bank.
The sovereign debt, banking, and euro crises are closely connected.
Given their large, battered holdings of peripheral eurozone countries’ sovereign debt, many of Europe’s thinly capitalized banks would be insolvent if their assets were marked to market.
Disagreement among and between heads of state and the ECB over the Bank’s purchases of distressed sovereign debt have only added to the uncertainty.
A decent pan-European economic recovery, and successful gradual fiscal consolidation, would allow the distressed sovereign bonds to rise in value over time.
Prices of bank shares and the Euribor-OIS spread (a measure of financial stress) signal a profound lack of confidence in the sovereign debt of distressed countries, with yields on ten-year Greek bonds recently hitting 25%.
There are three basic approaches to resolving the banking crisis (which means resolving the fiscal adjustment, sovereign debt, and euro issues simultaneously).
One estimate suggests that a 50% reduction in the value of peripheral countries’ sovereign debt (reasonable for Greece, but high for the others) would cause about $3 trillion in losses, overwhelming the capital of European banks.
Most European officials hope that, when combined with substantial public money to support troubled sovereign debt, it will.
If market-driven recapitalization is too slow, and closing failing institutions is impossible, a more extreme alternative is to inject public capital directly into the banks (rather than indirectly, as now, by propping up the value of the sovereign debt that they hold).
Similarly, Norway’s sovereign wealth fund recently announced that it will hold companies in its portfolio accountable for their human rights records.
High-income countries like Norway can borrow to finance such projects, allowing them to save their oil wealth in a sovereign fund.
In her first term, Bachelet adopted draconian but fiscally responsible policies, generating huge government surpluses that were earmarked for an ambitious pension reform and a rainy-day sovereign wealth fund.
But sovereign decisions are unavoidable everywhere, Schmitt argued, even in societies founded on liberal principles.
But the risk that the world’s investors currently are trying to avoid by rushing into US, Japanese, and German sovereign debt is not a “fundamental” risk.
According to Article 9 of the constitution, drafted by American lawyers in 1946, when Japan was under Allied occupation, Japan renounces “war as a sovereign right of the nation and the threat or use of force as means of settling international disputes.”
But taking away Japan’s sovereign right to use military force had one major consequence: Japanese security was put almost entirely into American hands, reducing Japan to the status of a vassal state.
The irony in all of this is that Germany, which was perceived as ruthless during the European sovereign (and private) debt crises, is now calling for solidarity.
The Germans should recall the last episode of widespread sovereign default – Latin America in the 1970’s.
For Ireland, too, sovereign debt, including bridge financing, will rise close to 150% of GNP by 2014, and is mostly external.
But a sovereign default would require a much larger bank bailout than in Greece, potentially leaving private debt almost worthless if official debt has seniority.
In Ireland and Spain, transferring the banking system’s huge losses to the government’s balance sheet – on top of already-escalating public debt – will eventually lead to sovereign insolvency.
Bank bonds could also be reduced and converted into equity, which would both avert a government takeover of banks and prevent socialization of bank losses from causing a sovereign debt crisis.
To face the challenges of the future, they declare, Europe must return to a less uncertain time, when sovereign countries’ closed borders kept foreigners out.
It was created in 1945 to be the servant of its member states, and Article 2.7 of its charter protects the sovereign jurisdiction of its members.
A better approach would be to create a mechanism for orchestrating orderly sovereign default, both to minimize damage when crises do occur, and to discourage lenders from assuming that taxpayers’ money will solve all major problems.
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