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Why the euro needs Eurobonds: Hundreds of years of reasons
Is it time for Eurobonds? This column argues that Eurobonds have always been the right solution. Every successful union throughout history has needed to create a proper financial instrument of sovereign debt – and the Eurozone is no different. The ongoing Eurozone crisis has at least four dimensions: Divergent labour costs between countries Reluctance to embrace fiscal sharing, Seemingly high levels of some sovereign debts, and Self-fulfilling high interest rates on some sovereign bonds that may lead to default. Eurobonds have been proposed as a tool to address the last issue. Although these have been discussed for ... (full story)