Joint liability in international lending: A proposal for amending the Treaty of Lisbon

Kaushik Basu, Joseph Stiglitz, 2 January 2014

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The sovereign debt crisis exposed weaknesses in the Eurozone’s financial architecture that may not have been fully anticipated when the founding treaties of the Eurozone were drafted. Key among these weak spots are the provisions of the Treaty of Lisbon which regulate intergovernmental debt obligations and preclude direct financing of sovereigns by the ECB.

Topics: EU institutions, International finance
Tags: eurozone, Eurozone crisis, Lisbon Treaty, Maastricht Treaty, moral hazard, no-bailout clause, sovereign debt

The 30 billion euro deal

Hans-Werner Sinn, 22 June 2007

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For Peer Steinbrück and Axel Weber, 2007 is an important year, as the fifth anniversary of the euro in circulation also marks the end of the transition phase to the full socialisation of the Bundesbank’s seigniorage, i.e. its profits from money creation. The times when Germany could achieve special profits from exporting its currency are gone for ever.

Topics: Monetary policy
Tags: Bundesbank, Germany, Maastricht Treaty, seigniorage

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