compensation mechanism


Bailouts without growth for the euro zone

By Luis Arroyo, in Madrid | There is talk lately in the euro area about the capacity of our firewall, about what sort of volume it should reach in order to frighten the bond markets. This firewall is, of course, the European Financial Stability Facility, the current bailout fund to be replaced in 2013 by the European Stability Mechanism. German Chancellor Angela Merkel has surprised everyone by saying she is willing to…