Sep 17, 2011
The Observer: Eurobonds and democracy must go together
Eurobonds and democracy must go together
“Eurobonds risk pulling economic decision making even further out of the hands of citizens” (Photo: EdMadrid)
By NICCOLO MILANESE
Economists are increasingly in agreement that some form of Eurobonds will be necessary to overcome the sovereign debt crisis in Europe. Eurobonds would ensure liquidity in the Eurozone and create a unified European bond market large enough to stop speculative sovereign debt attacks.
But leaders and decision-makers should know that the economic problems will not be resolved without ultimately resolving the democratic problems as well. Eurobonds must be set up not with the perspective of appeasing the markets alone, but with the perspective of restoring control over the markets both by politics and by European citizens.