Bond Insurance Can Save the Eurozone
Walther Otremba, fmr. German government official | October 14, 2011
A state-run EU bond insurance system could provide security for Eurozone creditors without compromising members’ fiscal sovereignty. ++ Nations’ interest rates would still fluctuate according to their financial standing but bonds would be backed fully by the EU. ++ Such a system could create significant revenues quickly and remove speculation against individual members by backing their bonds with the guarantee of the full Eurozone. ++ This plan could be introduced quickly and without running into major constitutional roadblocks.
