Comments from the Bundesbank's Weidmann:
- Suggests 3-year extension of any country's bonds that has requested ESM bailout programme
In practice, that kind of policy would be nearly impossible to implement because it would trigger sovereign defaults.
In other comments he called for risk weightings on government debt as soon as possible but said it's difficult to judge the 'right' premium.
I suspect he'll have no problem assigning zero risk premium to German government debt.
