The proposed debt restructuring would convert EFSF loans to something akin to preference shares — a debt-for-equity swap. (...) This is, of course, risk sharing — not by issuing common debt, but by taking equity stakes in a distressed country with a view to turning it around. I suspect this might be anathema in creditor countries. But as Mario Draghi pointed out in a speech in Helsinki in November 2014, some form of risk sharing is essential if the eurozone is to survive. Mr Varoufakis’s scheme thus deepens European integration without breaking the taboo on common debt. It deserves serious consideration.
Friday, February 06, 2015
Publicada por Miguel Madeira em 14:31