Past Event

Sovereign debt restructuring: legal frameworks and European challenges

European Macroeconomics and Governance

Date: Feb 12 - Topic: Macroeconomic policy

There have been several sovereign debt crises and debt restructurings during the past decades, primarily in emerging and developing countries, but during the past few years many European countries have also faced major difficulties in financing their budgets. Greece has gone through major debt restructuring.

The regular reoccurrence of such crises in emerging countries, together with high public debt levels and weak growth outlooks in some European countries, suggests that debt restructuring could return to the agenda. However, there is no global legal framework for orderly sovereign debt restructuring, which could complicate the resolution of public debt overhangs. In Europe, there is a renewed discussion on whether Greek public debt should be restructured again, even though the bulk of Greek public debt is in the hands of official creditors and enjoys very preferential terms.

The workshop brought together a distinguished group of speakers to assess legal options for debt restructuring and European challenges.

The first session of the workshop assessed broader issues, drawing lessons from Argentina, Europe and hundreds of other debt restructuring episodes. How much does the lack of a global legal framework for debt restructuring hamper the resolution of sovereign debt crises? Can collective action clauses substitute the lack of a sovereign debt resolution mechanism? Is there a need for a European mechanism for sovereign debt crisis resolution? Would an automatic lowering of the debt burden upon the breach of contractually-specified thresholds be the right solution in the specific context of the euro area?

The second session of the workshop focused on the current case of Greece. Is Greek public debt unsustainable? What is the rationale for offering debt relief for Greece? What are the available options to improve the sustainability of Greek public debt? Would a new Greek debt relief have implications for other EU countries which also received financial assistance during the crisis?

The panellists offered some preliminary remarks on these and related questions, followed by a general discussion.

Programme

11:30-13:00 Session 1. The lack of legal framework for sovereign debt restructuring: A problem for all?

Chair: André Sapir, Senior Fellow at Bruegel and Professor at Université Libre de Bruxelles

Panellists:

  • Hernan Lorenzino, Ambassador of Argentina, former Minister of Finance
  • Ashoka Mody, Non-resident fellow at Bruegel and Professor at Princeton University (by video conference)
  • Moritz Kraemer, Managing Director and Chief Rating Officer, Sovereign Ratings, Standard & Poor’s

13:00-13:40 Lunch break

13:40-15:10 Session 2. The Greek public debt: Is it (un)sustainable?

Chair: Guntram Wolff, Director of Bruegel

Panellists:

  • John Milios, Chief Economist of Syriza
  • Zsolt Darvas, Senior Fellow at Bruegel
  • Ludger Schuknecht, Director General of Economic and Fiscal Policy Strategy, International Economy and Finance, Federal Ministry of Finance.
  • Reza Moghadam, Vice-Chairman of Global Capital Markets at Morgan Stanley and former head of the IMF European department

Event materials

Presentation by John Milios

Full recording of the event: Panel 1 and Panel 2

Video of interviews following the event

Practical details

  • Venue: Bruegel, Rue de la Charité 33, 1210 Brussels
  • Time: 12 February 2015, 11.30-15.10
  • Contact: Matilda Sevón, Events Manager – [email protected]
Read about event
 

Past Event

Past Event

Microchips and Europe's strategic autonomy

Per microchips ad strategic autonomy.

Speakers: Piotr Arak, Alicia García-Herrero, Jay Lewis, Stefan Mengel and Niclas Poitiers Topic: Digital economy and innovation, European governance Date: November 2, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

Unboxing the State of the Union 2021

In this Sound of Economics Live episode, Bruegel experts look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

By: The Sound of Economics Topic: Macroeconomic policy Date: September 15, 2021
Read about event More on this topic
 

Past Event

Past Event

The Sound of Economics Live: Unboxing the State of the Union 2021

In this Sound of Economics Live episode, we look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

Speakers: Grégory Claeys, Maria Demertzis, Alicia García-Herrero and Giuseppe Porcaro Topic: Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: September 15, 2021
Read article More on this topic More by this author
 

Opinion

EU climate plan should involve taxing pollution, not borders

Climate change and taxes may be some of the only true certainties in life. To protect ourselves better, we should make careful choices on how they interact.

By: Rebecca Christie Topic: Green economy Date: September 6, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

The idea of Europe: more than a feeling?

What can 70 years of news(paper articles) and how we talk about 'Europe' tell us about pan-European identity? Is there even such a thing as a European public sphere?

By: The Sound of Economics Topic: Macroeconomic policy Date: April 16, 2021
Read about event More on this topic
 

Past Event

Past Event

The role of the ECB in stabilizing sovereign debt markets

What are the main lessons of ECB interventions in specific sovereign debt markets?

Topic: Macroeconomic policy Date: April 1, 2021
Read article Download PDF More on this topic
 

Working Paper

Interest in European matters: a glass three-quarters full?

Everything that increases the interest of European citizens in the EU, independently of whether it has a critical or a supportive character, will serve to move the EU closer to its citizens.

By: Francesco Papadia, Enrico Bergamini, Emmanuel Mourlon-Druol and Giuseppe Porcaro Topic: Macroeconomic policy Date: March 23, 2021
Read about event More on this topic
 

Past Event

Past Event

Presentation of the Euro Yearbook 2021

Join us for the launch of the eighth edition of the 'Euro Yearbook'

Speakers: Maria Demertzis, Fernando Fernández, Fiona Maharg-Bravo, Antonio Roldán and Jorge Yzaguirre Topic: Macroeconomic policy Date: March 12, 2021
Read article Download PDF More on this topic
 

Working Paper

Talking about Europe: exploring 70 years of news archives

This paper aims to contribute to the understanding of Europe as reflected in European media.

By: Enrico Bergamini and Emmanuel Mourlon-Druol Topic: Macroeconomic policy Date: March 2, 2021
Read about event
 

Past Event

Past Event

Disruption or transformation: the impact of a digital euro on the financial system

How would a digital Euro impact the financial system?

Speakers: Fabio Panetta and Guntram B. Wolff Topic: Banking and capital markets, Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 10, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

The geopolitics of money

The current debate on currencies is driven by politics rather than economics.

By: The Sound of Economics Topic: Global economy and trade Date: December 9, 2020
Read article More on this topic More by this author
 

Blog Post

Thinking big: debt management considerations for the EU’s pandemic borrowing plan

If not handled correctly, the European Union’s transition to take on a new role as an issuer of public debt risks crowding out existing markets. Managing that transition correctly is almost as big a challenge as spending the money itself.

By: Rebecca Christie Topic: Macroeconomic policy Date: December 9, 2020
Load more posts