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Seeking to douse a fire that some of their own leaders had ignited, the finance ministers of the biggest five E.U. members rushed out a statement last week at the Group of 20 summit meeting emphasizing that any future burden-sharing imposed on bondholders of a euro-zone state unable to meet its debts would not apply retroactively.
Therefore, if this is true, then it implies that if the whole of LICs' current shortfalls is demanded from HICs, there will be disproportionate burden sharing between LICs and HICs because LICs are imposing part of their obligation onto HICs.
It added, though, that the threat of a debt restructuring or default will hang over Spain for years: In Moody's view, the maintenance of market access is critical because the risk that some form of burden-sharing will be imposed on bondholders is material for those countries that rely entirely or to a very large extent on official-sector funding for an extended period of time.
Burden sharing!
Burden sharing does not exist.
This is not burden sharing.
The question is about European burden sharing.
"I understand US taxpayers are interested in fair burden sharing.
They like the idea of burden sharing.
But, John Lanchester says on this week's Political Scene podcast, there is one thing they're not sharing: the burden of imposing "brutal cuts" to reduce the country's deficit, which is eleven per cent of the G.D.P. and rising.
He fears that Europe may go ahead with a two-speed system of regulation.Charles Goodhart of the London School of Economics suspects that European regulators will find it hard to impose burden-sharing anyway, in a financial landscape that is becoming more fragmented and national.
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