EU debt restructuring

Eurozone with masks

Cancellation Of Public Debt In The Eurozone? It Can Be Done, But It’s Not Wanted

Gemma Cairó i Céspedes (University of Barcelona) | A few weeks ago, a group of prestigious economists addressed a proposal to the ECB. In it, they called for the restructuring of the Eurozone countries’ public debt and proposed the need for the ECB to write off their public debt (or swap it for perpetual debt). Although it is true the Treaty of the European Union explicitly forbids the ECB from financing governments, it does not express explicitly that debt restructuring is not possible.