A (hopefully) interesting debate whether the euro zone's debt should be mutualised started toady between Paul De Grauwe and Ansgar Belke on the
webpage of The Economist. The opening remarks of Paul de Grauwe
By pooling government debt, the weakest in the union are shielded from the destructive upsurges of fear and panic that regularly arise in the financial markets of a monetary union and that can hit any country.
The opening remark of Ansgar Belke are
The mutualisation of the euro zone's debt to bring about the convergence of interest rates will not, in the long run, tackle the roots of the problem. Instead it will sow the seeds of an even larger crisis.
So while Paul is in favor, Ansgar is against the motion of a mutualization.and for today he is also ahead in terms of voters. The rules for this discussion can also be found at the website. The closing of this debate will be the 18th of July so, see you then....
