REUTERS/Ints Kalnins - Germany's Minister of Finance Wolfgang Schauble speaks at a news conference at the end of an informal meeting of Ministers for Economic and Financial Affairs (ECOFIN) in Riga, Latvia, April 25, 2015.
Mr. Schäuble's ultimate weapon: The restructuring of European public debts
December 15, 2015,
A German plan for revamping the euro-area proposes an automatic mechanism for sovereign debt-restructuring. Carlo Bastasin writes that from the perspective of debt defaults, the plan could enforce more discipline, but it also risks dramatizing any future episode of financial instability.