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VOX CEPR Policy Portal


Peter Bofinger, Lars P. Feld, Wolfgang Franz, Christoph M. Schmidt, Beatrice Weder di Mauro

A European Redemption Pact

The EZ crisis has taken a turn for the worse. This column, the joint work of the five members of the ‘German Council of Economic Experts’, proposes a novel solution to the crisis – the European Redemption Pact and an associated European Redemption Fund. This would – like Eurobonds – create a joint debt vehicle, but unlike Eurobonds it would be temporary, say 25 years. Its aim would be to ease down the current unsustainable levels while implementing credible fiscal policy reforms in all EZ nations...

Bofinger, P., L. Feld, W. Franz, C. Schmidt and B. Weder di Mauro (2011), A European Redemption Pact . VOX CEPR Policy Portal, 09.11.2011.

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