The European Union’s 27 member states may have agreed to reopen the bloc’s governing treaties to set up a new bailout system for any future Greece-like debt implosions, but just what that system will look like is expected to be the next great debate of the ongoing euro crisis.
As our Fankfurt correspondent Ralph Atkins reported, Wolfgang Schauble, the German finance minister, has thrown out a general outline. But the first significant stab at getting to the nuts and bolts was unveiled Tuesday morning by a group of economists that includes a former general counsel and a former deputy director of the International Monetary Fund.
The proposal, published by the Brussels-based think tank Bruegel, is almost as interesting for its account of the history of trying to set up such permanent bailout systems in the past – almost all failures – than it is on the substance of its policy proscriptions for the future, however. Read more