Mandatory bonds: at last a creative proposal

To fight the crisis the German Institute for Economic Research (DIW) on Wednesday proposed the idea of mandatory bonds which could later be bought back with interest once the economic situation permits it. The liberal business daily Jyllands-Posten sees this as an original idea: "Force is never desirable, but the DIW deserves credit because it has worked seriously on the basis of solid scientific research to come up with models for solving the crisis that offer an alternative to the International Monetary Fund or the European Central Bank. … In view of the 25 million unemployed [in the EU] and a record level of unemployment among young people, academic potential must be exploited and unusual approaches considered while focusing on the objectives of generating growth and employment and improving public  finances. It's clear that the European welfare state model has had its day and should have been adjusted to the new reality long before the crisis began."

» full article (external link, Danish)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Tax Policy, » Germany, » Europe
Who's saying what » Ways out of the debt crisis

» To the complete press review of Friday, July 13, 2012