Archivi tag: Europe

rethinking_people

The Covid-19 crisis highlights the unescapable weaknesses of the grounds of the European project. History is calling us, asking for inevitable changes for a better future, leaving behind what has already been proved not to work.
For this reason, we propose some measures which face the inconsistencies of the institutional and economic system of the European Union, both for the most effective response to the emergency and for a medium-long run horizon.

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By toonpool.com

‘Eurobonds’ are securities denominated in a foreign (respect to the country of issuing) currency. Then, why everybody is so concerned, especially now days, about something that exist since 1963 – when Autostrade issued in Italy for the first time 60.000 bonds denominated in U.S. Dollar? Well, the ‘Eurobond’ we are talking about is also called ‘stability bond’, a government’s bond, denominated in euro, issued jointly by eurozone states. Again, ‘what’s the point?’, we all know sovereign is issued also, if not primary, through traded securities. The point here is what is underlying the issues of common government securities, i.e. interest rates and collaterals.
In this series of articles, we will explain what Eurobonds are, why there are so many concerns around them and if they could be developed someday soon. In particular, we will go through European peculiarities and we will analyse all viable options to face extreme conditions as it is for COVID-19.

 

BACK TO 90s: THE FIRST PROPOSAL FOR EUROBONDS

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By toonpool.com

‘Eurobonds’ are debt securities denominated in a currency foreign to the country of issuing. Then, why everybody is so concerned, especially nowadays, about something that exists since 1963, the year when Autostrade issued the world’s first 60.000 Eurobonds denominated in U.S. Dollar? The answer is simple: the same word is also used to define another concept. The ‘Eurobond’ we are talking about is also called ‘stability bond’, a government bond, denominated in euro, issued jointly by the eurozone states. How is it different from the usual sovereign debt?
The point here is what is underlying the issues of common government securities, i.e. interest rates and collaterals.
In this series of articles, we will explain what Eurobonds are, why there are so many concerns around them and if they could be developed someday soon. In particular, we will go through European peculiarities and analyse all viable options to face extreme circumstances  as it is for COVID-19.

Why everybody messed up with debt

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4state

In the last 20 years we have witnessed political and economic processes becoming more and more interconnected and interdependent. Still, it is taking us some time to acquire awareness of the mechanisms behind  such processes. The bottom line of our first 20 years of this century is one: the gradual disappearance of the middle class, the rise to power of populist parties and an increasing inequality even between the richest. In these processes a major role is played by the banks, and the policies adopted to save them.

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