The latest collection of briefing papers for the European Parliament’s Monetary Dialogue with the ECB are available here. One set of papers (including one by me) discuss bank and sovereign debt resolutions (this paper is the source of my comments here on senior bank bonds). The other set discuss the issue of Eurobonds.
3 replies on “Monetary Dialogue Briefing Papers: March 2011”
Dialogue with the ECB? What a great idea!
Karl,
On sovereign debt: it’s unclear from your paper whether you favour eurobonds. You don’t disuss them at all. Couldn’t collective action clauses (CACs) be an integral part of a eurobond issuance which would help reduce the implied risk premium on this new type of security for all Member States?
Am glad to see my suggestion above has been seconded by none other than George Soros 🙂 He goes further and says Member States should pay a risk premium on any borrowing exceeding the Maastricht criteria.
http://www.ft.com/cms/s/0/27181784-53b3-11e0-a01c-00144feab49a.html#axzz1HBJFKbQx