Destination: euro bonds

The expansion of the euro bailout mechanism is a further step towards mutualising the debt of the Eurozone countries, the conservative Frankfurter Allgemeine Zeitung complains: "First the cabinet member swore allegiance to the Maastricht treaty according to which no Euro country may be held liable for the debts of another. Then they ruled out the option of IMF help saying that Europe could help itself. Then they promised automatic sanctions for countries that exceeded the debt limits. … Bankers and EU commissioners viewed the restructuring of Greece's debt as a red line the overstepping of which would lead to the collapse of the monetary union and even a global financial crisis. But neither of these things happened. … When red lines are overstepped they perhaps serve a different purpose. The constant expansion of liability for the debts of other countries has a logical conclusion: the mutualisation of all the debt in the Eurozone. From this perspective a red line leads to the goal of the 'debt sinners': euro bonds."

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