Why the rescue fund is large enough

According to their government accounts, Ireland, Portugal, and Spain only need €310 billion. This article argues that analysts calling for a larger fund must have something else in mind, for example, using EU capital to reduce national debt via debt buybacks. While debt buybacks are reasonable, granting EU loans for this purpose is not.

VoxEU.org is a policy portal set up by the Centre for Economic Policy Research in conjunction with a consortium of national sites, including the Italian site LaVoce, the French site Telos and the Spanish site Sociedad Abierta. Vox aims to promote research-based policy analysis and commentary by leading scholars. The intended audience is economists in governments, international organisations, academia and the private sector as well as journalists specializing in economics, finance and business.

ESO: Background information: Berlin reinforces stance on eurozone rescues http://www.europeansources.info/record/berlin-reinforces-stance-on-eurozone-rescues/

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