The bonds that tie Italy down may destroy crisis-hit euro

The bonds that tie Italy down may destroy crisis-hit euro

Press quote (The Irish Independent)
Philip Whyte, Simon Tilford
13 November 2011

 "It is now clear that a currency shared by fiscally sovereign member-states is more vulnerable to losses of confidence than a monetary union that is more fully integrated," said the CER in a paper published last week.

"The eurozone crisis has shown that a shared currency with an increasingly integrated financial sector cannot comfortably co-exist with national regimes for supervising, rescuing and 'resolving' banks," said the CER. "The problem is not just that the supervisory architecture is not sufficiently effective, but also that the system is more prone to banking and sovereign debt crises that feed on each other."