“An option for the EU: blow up debt inside a bunker” By Sergio Baggiani, courtesy of IREF Debt mutualisation is an option to manage the expected rise of sovereign debt and the need for a greater supply of low-risk bonds. Yet, this option could run into political difficulties. European Bonds (details here, 2016) are […]
Tag: bonds
Euro budget proposals break with longstanding taboo
“The MFF recovery plan breaks with a fundamental taboo” By Jorge Núñez Ferrer, courtesy of CEPS The European Commission has presented a proposal to amend the Multiannual Financial Framework (MFF) for 2021-27 of the EU budget – integrating a recovery plan as a post-Covid response. Many elements of the plan are clearly in line with the […]
Don’t loosen bank rules for Green New Deal
“European green finance is expanding, a discount on bank capital would discredit it” By Alexander Lehmann, courtesy of the Bruegel Institute The Commission’s ‘European Green Deal’ sets out massive investment needs in a variety of areas, amounting to potentially 1.5 per cent of the EU’s annual GDP. If these targets are to be […]
New finance rules: Too much information?
“MiFID II: Too much consumer protection?” By Benedikt Schmal and Alexander Fink, translation by Anna-Maria Köhnke; Courtesy of IREF The recently updated European Markets in Financial Instruments Directive, commonly abbreviated as MiFID II, is supposed to enhance consumers’ protection. Adjustments of regulatory background questions aside, the EU aims to improve “protection of investors by prohibiting the […]
Argentina’s New Look: Get ready for a haircut, bondholders
Argentina’s likely next president, Alberto Fernandez, has signaled his intention to “restructure” the country’s debt, meaning another selective default following the one already imposed by current president Maurico Macri in August. The terms currently proposed by Fernandez, who is widely expected to win the country’s next election slated to begin October 27, involve […]