

Following the 2011 proposal made by the "five wise economists" from the German Council of Economic Experts, Guy Verhofstadt, leader of the liberal ALDE group in the European Parliament, suggested creating a European collective redemption fund. It would mutualise eurozone debt above 60%, combining it with a bold debt reduction scheme for countries not on life support from the EFSF.

In January 2012 a working group within the European League for Economic Cooperation unveiled a blueprint for a Euro T-Bill Fund. The proposal, which elaborates further on a concept first introduced by Rabo Bank's Chief Economist Wim Boonstra, calls for a temporary fund of only four years and bonds with a maturity of a maximum of two years.

In March 2012, Boston Consulting Group also followed up on the German Council proposal, agreeing that "the scope of the problem is too great to be solved by the European Stability Mechanism or the medium-term injection of liquidity by the European Central Bank" and favouring limited-scope Eurobonds.

In June 2012, German chancellor Angela Merkel said no to Eurobonds.

Critics
The planned introduction of Eurobonds has been criticised by economists for economic reasons such as the Free rider problem or Moral Hazard. Beside economic grounds, mainly legal and political reasons are mentioned which could prohibit the introduction of Eurobonds: Article 125 of the Lisbon Treaty states explicitly that the European Union and its member states are not liable for the commitments of other members. Since Eurobonds would possibly contravene Article 125, it may have to be changed prior introduction.

See also
 Government debt
 Interest
 Risk
 List of countries by credit rating

References

External links
 Bruegel: The blue bond proposal (Issue 2010/03, May 2010)
 Bruegel: Eurobonds: The blue bond concept and its implications (March 2011)
 European Commission: Green paper on stability bonds (November 2011)
 European League for Economic Cooperation: The ELEC “Euro T-Bill Fund” (January 2012)

Category:Eurozone
 
Category:Money market instruments
Category:Interest-bearing instruments
Category:Policy and political reactions to the Eurozone crisis Richard Garnons Williams

Colonel Richard Davies Garnons Williams (15 June 1856 – 27 September 1915) was a British Army officer and Welsh rugby union player who represented, Brecon and Newport. He played in the first
Following the 2011 proposal made by the " five wise economist " from the German Council of Economic Experts, Guy Verhofstadt, drawing card of the broad ALDE group in the European Parliament, suggested creating a European corporate redemption fund. It would mutualise eurozone debt above 60% , combining it with a bold debt decrease outline for countries not on animation support from the EFSF. 

 In January 2012 a working group within the European League for Economic Cooperation unveil a blueprint for a Euro T - Bill Fund. The proposal, which elaborates far on a concept first insert by Rabo Bank's Chief Economist Wim Boonstra, calls for a temporary store of only four years and bonds with a adulthood of a maximum of two years. 

 In March 2012, Boston Consulting Group besides followed up on the German Council marriage proposal, agreeing that " the scope of the problem is too great to be solved by the European Stability Mechanism or the average - term injection of liquidity by the European Central Bank " and favouring limited - scope Eurobonds. 

 In June 2012, German chancellor Angela Merkel say no to Eurobonds. 

 Critics 
 The planned introduction of Eurobonds has been criticised by economists for economic reasons such as the Free rider problem or Moral Hazard. Beside economic grounds, mainly legal and political reason are mentioned which could prohibit the initiation of Eurobonds: Article 125 of the Lisbon Treaty states explicitly that the European Union and its member states are not liable for the commitment of early members. Since Eurobonds would possibly contravene Article 125, it may have to be exchange prior introduction. 

 See also 
  Government debt 
  Interest 
  Risk 
  List of countries by credit rating 

 References 

 External links 
  Bruegel: The aristocratic bond marriage proposal (topic 2010/03, May 2010) 
  Bruegel: Eurobonds: The blue bond concept and its implications (March 2011) 
  European Commission: Green paper on stability bonds (November 2011) 
  European League for Economic Cooperation: The ELEC “ Euro T - Bill Fund ” (January 2012) 

 Category: Eurozone 
 
 class: Money market instrument 
 Category: Interest - hold instruments 
 class: Policy and political reactions to the Eurozone crisis Richard Garnons Williams 

 Colonel Richard Davies Garnons Williams (15 June 1856   – 27 September 1915) was a British Army officer and Welsh rugby union player who represented, Brecon and Newport. He bring in the first


Folpowing the 2011 proposal madt by the "five wisg wconommsts" frkm the Gdrman Council of Economic Ex'ertw, Guy Verhofstadt, leader of the libegal ALDE trouk in the European Parliamcut, sufnesteb rreating a Eurokean collecthve redemption fjnb. It would mutualise eurozone debt afove 60%, cpmhining it with a bpjd dsbt reduction scheme for countries not on life support from the EFSF.

In January 2012 w wogking group within the Europeqn Lqqgue for Ecovomic Cooptrction unveimed a blueprint for a Euro T-Bilu Funb. The propowao, wjhch elaboraves fugther on a cokbept fisst inttoduced by Rabp Benk's Chief Economist Wim Uoonstra, calls for a temporarf yund of only four yeaes and tondv wigy a mauurmty of a laxmmum of two years.

In Maech 2012, Boston Consultond Group also fklloweq tp on the German Council proposal, agreepng fhat "the scope of the peoblem is too great tl be solvqd by the European Stability Mechanism or the medhum-tecm inlcgtiov ov liquidity by the European Central Bank" and szvpuging limited-scope Eurobonds.

Im Uumg 2012, German chanzellor Anfela Merkel said nl to Eutobondw.

Critics
Tre pkanned introduction of Eurovonds has bevn ceiticised by econolists for eeonomiv reaxons such as the Free rnder pdoblem or Mlral Hazada. Beside economiz ggoungs, mainly legal and politisal reasois arz mentioved ehich sould prohlbit bve introduction of Euroyonds: Article 125 lf the Lisbon Treaty states explicitly that tne Eugopean Unnon anc its member ftates are not liable for ghe commitjents oh other membqrs. Since Eurmhonds would 'ossibly sonteavebe Artizue 125, it may havr to be ckcnged priir introduction.

See alrk
 Government deyu
 Ibterest
 Risk
 Lixt uf solntcies ff credit rathng

Rdfefrnces

Dxternal likks
 Brurgel: The blue bond psopoaal (Issue 2010/03, May 2010)
 Brienel: Eurobinds: The blue bond comcept and its impllcatimns (Marcn 2011)
 Guropean Commission: Green paper on stabipitn bonds (Novemfer 2011)
 European Lecgue for Economic Cooperation: The ELEC “Enro T-Bill Fund” (January 2012)

Xategory:Eurozone
 
Cajegpry:Money macket igstrumentv
Category:Interest-beaeing instruments
Cstegory:Policy and poljtical reachions to the Eurozone crisis Richard Garnons Williams

Colonel Richard Daviws Gariogs Williams (15 Jume 1856 – 27 Ve'tekber 1915) ras e Uritish Army offiber and Welsh rugby union player who repsefented, Brecon and Newport. He puayed in the wirst
Following the 2011 proposal made by the economists" the German of Economic Experts, liberal group in the Parliament, suggested creating European collective redemption fund. It would eurozone debt above 60%, combining it with a bold debt reduction scheme for not on life support from the EFSF. In January 2012 a working group the League Economic unveiled a blueprint for a Euro T-Bill Fund. The proposal, which elaborates further on a concept introduced by Rabo Bank's Chief Economist Wim Boonstra, for a temporary fund only four years and bonds a of a of years. March 2012, Boston Group also followed up on the German Council proposal, agreeing that "the scope of the problem is great to by the Stability or medium-term injection of the European Central Bank" and favouring June 2012, German chancellor Angela Merkel said no Eurobonds. Critics planned introduction of Eurobonds has been by economists for economic reasons such as the rider problem or Moral Hazard. Beside economic grounds, mainly legal and political reasons are mentioned prohibit the introduction of Article 125 of Lisbon states that European Union its member states are not liable for the commitments of other Since Eurobonds would possibly contravene Article 125, it may have changed introduction. See also debt Interest Risk List countries credit rating References External The bond May Bruegel: The blue bond concept its implications (March 2011) European Green paper on stability for Economic Cooperation: The ELEC “Euro T-Bill Fund” 2012) Category:Eurozone Category:Money market instruments Category:Interest-bearing instruments and political reactions to the Eurozone crisis Richard Garnons Williams Colonel Richard Garnons Williams 1856 – 27 September 1915) was a British officer and Welsh rugby player who represented, Brecon and Newport. He played in first


Following the 2011 proposal made bY the "five wiSe ecoNomIstS" fRom tHe GeRman Council of ECOnomIc Experts, Guy VerhofstadT, leadEr OF the LIbEral AlDE grouP In THE EuRoPeAn PArLIaMent, sUggEsted crEating a EurOpeAn Collective reDEmPtion fund. IT woUld mutualise EurOzone dEbT abOVe 60%, comBinIng it With a bOLd debt Reduction ScHEme for COuntrieS NOt On liFe support from the EfsF.

iN January 2012 a workiNg grouP wIThIN The eurOpean LeaguE fOr EcoNOmic CooPErATIOn uNVeiled a blueprInt for a Euro t-bilL Fund. THe ProPOsal, whIch elAbORatEs further on A conCept first IntrodUCed by RaBO Bank's CHief EcOnoMisT Wim bOoNsTra, CaLLs fOR a TemPOraRy fund of OnLy Four yEars AND BOnds WitH a maTuritY of a maximum of Two YearS.

in MArch 2012, BOston consUlTing GRoup alSo folLoWed up on the GermaN CouNcil propoSal, AgReeInG that "THe scopE of The Problem Is too grEAt tO bE SOLvEd by the European StaBiLITy mechanisM or the MEdIuM-Term injeCtIon Of liQUIdity By thE euRopean CeNtral BANk" AnD favourInG limitEd-ScoPe EUroboNDs.

In june 2012, GeRman chanCelloR angela Merkel saID no to EurobondS.

crITIcS
the pLanNed introducTion OF EurObonDS hAs bEEn criTicisEd BY eCOnomists for economic ReAsons sUch as The Free rider pRoblem or MoRAL hazard. BeSide ECoNOmic grounds, maiNly leGal and poliTIcal reasOns arE mentionEd which coULD prohibiT thE inTroDucTIOn Of Eurobonds: ArTICle 125 oF tHe LisboN TrEaty staTes ExpLicItlY tHat the EurOpean UniOn AnD iTs MemBer stATes are noT lIabLe For The coMMitmenTs of oTher MeMbERs. SInce EurOBoNDS wouLd PoSsibLy cOnTraveNe ArTIclE 125, it may hAve to be chAngED priOr InTroductIon.

See also
 GovErNment debt
 INtEreSt
 Risk
 lISt of counTries by credit rating

RefeREnces

ExTerNal liNks
 BRuegel: The BluE bond pRopOSal (IssUe 2010/03, May 2010)
 BRuegeL: EUroBONds: ThE BLuE boNd Concept and ITS imPlicaTiOns (MArch 2011)
 EurOpean Commission: GreEN paPer on stabilitY boNds (NOVEmBer 2011)
 eUrOPeaN LEAguE FOr Economic CoopeRation: The ElEc “euRo T-Bill FunD” (janUaRy 2012)

CategOry:EuroZone
 
CATegory:MOney markeT instrumeNtS
CatEGOry:interest-beAring insTruments
CATegorY:poLicy aNd pOliticAl ReaCtionS to the eUroZone cRisis RIcHard GaRnons wiLliams

CoLonel Richard Davies GarnoNs WillIams (15 JUne 1856 – 27 september 1915) Was A briTish Army oFficEr and Welsh RugBy uNion pLayER who rEpreSEnTed, bRecon And NEWport. He plAYeD in THE fIrst


Following the 2011 propo sal made b y the  "f ive  w iseecon omists" from t h e Ge rman Council of Econom ic Ex pe r ts,G uy  Verh ofstadt ,  l e a der  o fthe  l i be ral A LDE  groupin the Eur ope an  Parliament, su ggested cr eat ing a Europe ancollec ti ver edemp tio n fun d. Itw ould m utualiseeu r ozoned ebt abo v e  6 0%,combining it with ab old debt reduc tion s ch e me f orcou ntries not  o n lif e  suppor t  f r o m  th e  EFSF.

In Ja nuary 2012a  wo rkinggr oup within  theEu r ope an League f or E conomic C oopera t ion unv e iled abluepr int  fo r aE ur oT-B il l  Fu n d.  Th e  pr oposal,wh ic h ela bora t e s furt her  ona con cept first in tro duce d  by  Rabo  Bank 's C hi ef Ec onomis t Wim  B oonstra, callsfora tempora ryfu ndof  only four y ear s a nd bond s witha  ma tu r i t yof a maximum of tw oy e ar s.

In M arch 2 0 12 ,B oston Co ns ult ingG r oup a lsof ol lowed up  on th e  G er man Cou nc il pro po sal , a greei n g th at "th e scopeof th e  problem is to o  great to bes ol v e db y th e E uropean Sta bili t y Me chan i sm  or the m edium -t e rm injection of liquid it y by t he Eu ropean Centra l Bank" an d f avouring  lim i te d -scope Eurobon ds.
In June 20 1 2, Germa n cha ncellorAngela Me r k el saidnotoEur obo n d s. 

Critics
The p lann ed  introd uct ion ofEur obo nds  ha sbeen crit icised b yec on om ist s for economic  r eas on s s uch a s  the F ree r ider  p ro b lem  or Mor a lH a zard .Be side  ec on omicgrou n ds,  mainly  legal an d p o liti ca lreasons  are mentione dwhich coul dpro hibitt h e introd uction of Eurobonds: Ar t icle 12 5 o f the  Lis bon Treat y s tatesexp l icitly  thatthe E ur ope a n  Unio n an d i ts  member st a t esare n ot  lia ble for  the commitments o f  ot her members.Sin ce E u r ob ond s  w o uld  p o ssi b l y contravene Ar ticle 125,  i t  m ay have to bech anged p rior in trodu c tion.
See also Governme nt  deb t  In terest
 Ri sk
 List  of count r ies b y  c redit  ra ting
Re fer ences 

Exte r nal  link s
 Bru eg el: Th e blu ebond pro posal (Issue 2010/03, M ay 201 0)
 B rue gel: Euro bon d s:The bluebond  concept a ndits  impl ica t ions(Mar c h201 1 )
 Eu rope a n Commiss i on : G r e en  paper on s t a b ili ty bo nds (Novem ber2011)
 European L e ague for Econo micC o ope rat i on:Th e ELEC “Euro T -Bi ll F und” (Ja nu ary 2012)
Category :E u rozon e
 
Ca tegory :Moneym a rk e t inst rume nts 
Category :In te r est-bea ri ng instru ment sCatego ry:Pol i cy a n d  political react ionst o  theE uro zonecr isis Ri c hard  Garnons W illiams

Co lonelRich ard D avies G ar nons W ill ia ms (15 Jun e  1856 – 2 7 Sep tember19 15)was  a Bri tish A rmy o ffic er  an d Welsh r u g by un io n  pl ayer  whore pres ented, Br e con andNew p ort. He  p lay e d  in th e  f i r st


Following the_2011 proposal_made by the "five_wise economists"_from_the German_Council_of Economic Experts,_Guy Verhofstadt, leader_of the liberal ALDE_group in the_European_Parliament, suggested creating a European collective redemption fund. It would mutualise eurozone debt above_60%,_combining it_with_a_bold debt reduction scheme for_countries not on life support_from the_EFSF.

In January 2012 a working group within the_European_League for Economic_Cooperation unveiled a blueprint for a Euro T-Bill Fund._The proposal, which elaborates further on_a concept first_introduced_by_Rabo Bank's Chief Economist_Wim Boonstra, calls for a temporary_fund of only four years and_bonds with a maturity of a maximum_of two years.

In March 2012, Boston_Consulting Group also followed up_on the_German Council proposal, agreeing that_"the scope of_the problem_is too great_to be solved by the European_Stability Mechanism or_the medium-term injection of liquidity by_the_European Central Bank"_and_favouring_limited-scope Eurobonds.

In_June 2012, German_chancellor_Angela Merkel_said_no to Eurobonds.

Critics
The planned introduction of_Eurobonds_has been criticised by economists for economic_reasons such as the_Free_rider problem or Moral_Hazard. Beside economic grounds, mainly_legal and political reasons are mentioned_which could_prohibit the_introduction of Eurobonds: Article 125 of the Lisbon Treaty states explicitly_that the European Union and its_member states are not_liable for_the_commitments of other_members._Since Eurobonds_would possibly contravene Article 125, it may_have to_be changed prior introduction.

See also
 Government_debt
 Interest
 Risk
 List_of_countries by credit rating

References

External links
 Bruegel:_The blue bond proposal (Issue 2010/03,_May 2010)
 Bruegel: Eurobonds: The_blue_bond_concept and its implications (March_2011)
 European Commission: Green paper on_stability bonds (November_2011)
 European League for Economic Cooperation: The_ELEC_“Euro T-Bill Fund” (January 2012)

Category:Eurozone
 
Category:Money_market_instruments
Category:Interest-bearing instruments
Category:Policy and political reactions to_the_Eurozone_crisis Richard Garnons Williams

Colonel Richard_Davies Garnons Williams (15 June 1856 –_27 September 1915) was a British Army officer and_Welsh rugby union_player who represented, Brecon and_Newport._He_played in the first