Today in Euro Crisis History: Law of Unintended Consequences

November 28, 2010

EU Backs Debt Rules Calling for Investor Losses in Bailouts

(Repealed in December, 2011.)

European finance leaders backed a Franco-German compromise on post-2013 sovereign bailouts that waters down calls by German Chancellor Angela Merkel for investors to assume losses and share the costs with taxpayers. The plan will ask investors to take write-offs on a “case- by-case” basis, according to a statement issued late yesterday by euro-area finance ministers after a meeting in Brussels to ratify a bailout for Ireland.

Europe’s debt crisis only seems like it has gone on forever. This series of blog posts looks at headlines from this date in previous years that highlight the roots, twists and turns of the current turmoil.

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