Why the EU summit decisions may destabilise government bond markets

Commentary feature. Among the questions still remaining since last week’s summit of European leaders is whether the new measures will stabilise government bond markets. This column’s answer is ‘no’.

VoxEU.org is a policy portal set up by the Centre for Economic Policy Research in conjunction with a consortium of national sites, including the Italian site LaVoce, the French site Telos and the Spanish site Sociedad Abierta. Vox aims to promote research-based policy analysis and commentary by leading scholars. The intended audience is economists in governments, international organisations, academia and the private sector as well as journalists specializing in economics, finance and business.

• Primary Source

ESO: Background information: European Council, Brussels, 28-29 June 2012. Presidency Conclusions http://www.europeansources.info/record/european-council-brussels-28-29-june-2012-presidency-conclusions/

ESO: Background information: Spain wins restructuring of bank deal http://www.europeansources.info/record/spain-wins-restructuring-of-bank-deal/

Voxeu.org: Tag: Eurozone crisis http://www.voxeu.org/taxonomy/term/2277

ESO: Background information: Find other Commentary Features in ESO on Challenges facing EMU http://www.europeansources.info/advSearchLink?keyword=commentary%20feature%20emu%20challenges%20&searchOption=all

---