Wait, I thought Greece was a one-off! Was I lied to?
DPA, the German press agency, confirms that the German foreign ministry has prepared a paper laying out the possibility of more orderly defaults in the euro zone for euro members that are unable to achieve debt sustainability.
The orderly default mechanism should come into existence along with the ESM in 2013, the paper says. Many have been trying to accelerate the introduction of the ESM to 2012. Perhaps now we know why…
Can’t say I’d be all that excited to buy Italian debt if I’m just gonna take a haircut…