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Missing an European Treasury | 13 comments (13 topical, editorial, 0 hidden)
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European Tribune - Comments - Missing an European Treasury
  • When receiving funds issued by the European Treasury, member states shall incur in a fixed interest premium (say 1%) over the marketed interest. This extra interest could either revert to bond holders, the European budget or both

Doesn't that undermine the purpose of the exercise? The market could still extort ridiculous returns for holding bonds.

The easiest way to muddle through the crisis would be to order the ECB to enforce a maximal level of interest on Eurozone debt. But then the treaties explicitly forbid that.

by generic on Thu Mar 25th, 2010 at 12:42:08 PM EST

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Missing an European Treasury | 13 comments (13 topical, 0 editorial, 0 hidden)
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