Dec 10, 2010
| Last Updated
The EU heads of state summit on December 16-17 is shaping up to be a defining moment for eurozone stability. The finalization of the permanent post-2013 European Stabilization Mechanism (ESM) is on the agenda, including details on the required Treaty changes and the size of its lending capacity. Equally important are the criteria used in the joint EU/IMF/ECB debt sustainability analysis that define a state of insolvency versus illiquidity for ESM fund applicants. Insolvency exposes private investors (formally junior to[...]
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