These differences in the quality of governance, more than any technical problems, are probably the reason why the electorate in Northern Europe is sceptical about Eurobonds. With these fundamental differences in the way different member countries work it would in practice be impossible to conduct a unified fiscal policy even if the post of a Eurozone finance minister were created.UPDATE: another, similar critique of the eurobond idea here, from Yannis Palaiologos.
Wednesday, August 24, 2011
Gros: Eurobonds are not the answer
Daniel Gros argues that eurobonds are not the answer to the crisis of the euro. He makes several points, the last and most important of which is "quality of governance":