Debt crisis: Plan B for the euro
14 January 2011
It’s 2010 all over again, says The Economist. Bond yields are spiking across much of the continent, and Portugal’s interest rate for ten-year bonds has risen to 6.7 percent. “Europe’s bail-out strategy, designed to calm financial markets and place a firewall between the euro zone’s periphery and its centre, is failing,” notes the business weekly. The solution? Plan B: Restructuring of sovereign debt. Failure to do so will only result in more pain, it claims, saying the IMF’s expertise must be matched with political courage on the part of the EU.