Why Berlin won’t back down on euro reform

The German plan for a eurozone insolvency procedure has spooked the markets and drawn political fire. In this CER briefing note, Katinka Barysch explains why Berlin is unlikely to back down: the German constitutional court could forbid an extension of existing bail-out funds; making help available without the spectre of bankruptcy could encourage reckless behaviour; and the German parliament will insist on getting private investors involved in future bail-outs.

• Primary Source

ESO: EU leaders back new bail-out system http://www.europeansources.info/record/eu-leaders-back-new-bail-out-system/

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