WSJ Editorial—Europe’s Single Debt Zone

Posted by Kendall Harmon

European Union finance ministers agreed late Sunday on more than just an €85 billion bailout for Ireland. They also turned the currency union into a de-facto debt union by choosing to turn May's €750 billion rescue fund into a permanent feature of the euro zone. What's more, they promised that no sovereign creditor would face a haircut on their debt holdings until 2013, and that's at the very earliest.... is what the EU has done: In the name of combating speculation against the debt of euro-zone members, the EU has now insured all those speculators against loss for three years at least. Meanwhile, in creating a permanent crisis-management mechanism, the EU has succeeded only in making permanent crisis more likely.

Read it all.

Filed under: * Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeCredit MarketsCurrency MarketsEuroEuropean Central BankThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--* International News & CommentaryEurope--European Sovereign Debt Crisis of 2010

Posted November 30, 2010 at 5:44 pm [Printer Friendly] [Print w/ comments]
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