IDEAS home Printed from https://ideas.repec.org/a/ban/bancar/v05y2012mmayp22-44.html
   My bibliography  Save this article

Eurobond, yes we can!

Author

Listed:
  • Francesco Marchionne

    (Università Politecnica delle Marche)

Abstract

This paper explores an innovative solution to exit from the European debt crisis exploded in 2010.The proposal is based on the securitization of sovereign debts and the creation of a jointly responsibility bond among European countries, the Eurobond, with the surer tranches of their sovereign debts. Even if the idea is perfectible, the application of different economic concepts distinguishes itself from similar proposals and makes seemingly affordable, feasible and worth to realize it. From a financial viewpoint, it considers the risk of sovereign default as a physiological feature of the financial system. From a fiscal viewpoint, the proposal leads to a gradual fiscal union of Eurozone avoiding the reticence of virtuous countries.The idea is applicable also at the national level among local administrations: the mutual monitoring among partners and the threaten of exclusion from the next bond issues could incentive virtuous behaviour of participants and promote an endogenous public debt reduction

Suggested Citation

  • Francesco Marchionne, 2012. "Eurobond, yes we can!," BANCARIA, Bancaria Editrice, vol. 5, pages 22-44, May.
    • Handle: RePEc:ban:bancar:v:05:y:2012:m:may:p:22-44
    as

    Download full text from publisher

    File URL: http://www.bancaria.it/en/eurobond-yes-we-can/
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ban:bancar:v:05:y:2012:m:may:p:22-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Francesco Emiliano Tani (email available below). General contact details of provider: https://www.bancaria.it .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.