Two themes have gained momentum regarding a European sovereign debt overhaul
The first is that the rich countries of the euro zone seem to be resigned to increasing the size and flexibility of the European Financial Stabilization Facility.
The second is that in return for their patronage, the wealthier nations will require a strict set of budget rules and unprecedented oversight of national budgets.
Germany wants fiscal-stability rules to include almost-automatic sanctions for those who flout the euro zone’s fiscal rules. It seeks leveling retirement age and corporate taxes. The German government also wants talks to make wider use of a tax-brake law that forces the German federal government to reach an almost-balanced budget by 2016.
Seems like an eminently fair trade off to me…
