Euro crisis solution 2: mutual guarantees
Merging all eurozone governments’ national debts into one Eurobond might solve the funding problems of struggling peripheral states. But there are two big objections to the idea. For the wealthy nations, giving up their own tightly priced debt issuance to fund through a vehicle shared with Italy and Spain might be too painful a sacrifice to bear.
And Eurobonds would also require a permanent pooling of sovereignty probably with changes to national constitutions in many countries.
Such a change might be desirable at some point, but could be very difficult to negotiate at the speed needed to deal with a crisis. Indeed, hurrying into such
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