Euro-area governments should consider haircuts and the issuance of joint bonds to cut the debt burden of countries such as Greece, said Peter Bofinger , a member of German Chancellor Angela Merkel ’s council of economic advisers.
Peter Bofinger , a member of German Chancellor Angela Merkel ’s council of economic advisers, said euro-area governments should consider issuing joint bonds to refinance the existing debt of member countries, the newspaper Sueddeutsche Zeitung reported.
German Chancellor Angela Merkel and French President Nicolas Sarkozy may announce proposals that “go in the direction” of joint euro-area bonds, said Peter Bofinger, an economic adviser to the German government.
Germany’s economy will “markedly cool” in 2012 as demand for German goods in the U.S. is curbed by that country’s debt woes, said Peter Bofinger, an economic adviser to Chancellor Angela Merkel, the Rheinische Post newspaper said.
Greece’s debt problems can be solved by a Brady bond-style rescue operation in which Greek government bonds are swapped against debt issued jointly by euro-region members, said German government adviser Peter Bofinger .
Peter Bofinger, an economic adviser to German Chancellor Angela Merkel, said a Spanish banking collapse could threaten the whole European banking system because Spain’s lenders have foreign liabilities of 160 billion euros ($201 billion), Deutschlandradio Kultur reported today.