The authors provide a novel angle to the ongoing discussions by the G20 on sovereign contingent debt and argue that contingent debt could provide market-based insurance to protect the euro area from future debt crises. Risk-sharing with the markets is a practical way forward in the context of the Franco-German debate on risk-sharing among EU member states vs system-wide risk reduction. The financial innovation of contingent debt is a feasible euro area reform that would not introduce risk-sharing between states or require institutional reforms or Treaty changes. However, coordination would be needed. The authors’ suggestion fills a gap in the proposals on the completion of the banking union and the possible establishment of a European Monetary Fund (EMF). These proposals offer institutions-based solutions to crises, with the banking union providing safety regulations that will make banking institutions more resilient, while the EMF will be a ‘fire brigade’ to be called on in emergencies. What has not been tapped are the markets, whose tolerant behaviour to sovereign demands encouraged the build up of debt, while their finicky response exacerbated the crisis.

中文翻译：

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国家或有债务作为欧元区主权的保险

作者为二十国集团（G20）正在进行的有关主权或有债务的讨论提供了新颖的视角，并认为或有债务可以提供基于市场的保险，以保护欧元区免受未来的债务危机之害。在法德关于欧盟成员国之间的风险共担与全系统风险降低的辩论中，与市场进行风险共担是一种切实可行的方法。或有债务的金融创新是可行的欧元区改革，不会在国家之间引入风险分担，也不会要求进行机构改革或更改条约。但是，将需要协调。作者的建议填补了有关完成银行业工会和可能建立欧洲货币基金组织（EMF）的建议中的空白。这些建议为危机提供了基于机构的解决方案，银行联盟提供安全法规，使银行机构更具弹性，而在紧急情况下，EMF将成为“消防队”。尚未挖掘的市场是市场，其对主权要求的宽容行为助长了债务积累，而市场的挑剔反应加剧了危机。