Eurobonds: A Turning Point for Europe

Dirk Meyer ()

Chapter Chapter 2 in European Union and Monetary Union in Permanent Crisis II, 2022, pp 7-27 from Springer

Abstract: Abstract Government debt securities with joint and several liability, in short: eurobonds, are the key to a politically-normative question. In which direction is or should the eurozone move in the context of the sovereign debt crisis? The contribution focuses on the regulatory perspective. Economically, eurobonds—without a simultaneous surrender of sovereignty by the member states—violate the market economy principle of liability. Market control is replaced by political control. The associated suspension of the interest mechanism is associated with high implicit transfers, leads to capital reallocation to crisis countries and reduces their incentives to undertake necessary structural reforms. The contribution addresses the relationship to the previous rescue instruments and points to legal concerns.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-658-38646-7_2

Ordering information: This item can be ordered from
http://www.springer.com/9783658386467

DOI: 10.1007/978-3-658-38646-7_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().