João Fonseca, Pedro Santa-Clara, 11 May 2012

Eurobonds have been proposed as a solution to the crisis, but Germany is wary of guaranteeing the entire debt of EZ countries. This column suggests the more politically feasible Euro-coupon solution. EZ countries would issue bonds at market interest rates and transfers between countries would harmonise the effective interest rates.

Full Article: Euro-coupons: Mutualise the interest payments, not the principal