Portugal in race against time to sort out BES

July 10, 2014

Despite a recent successful rights issue, the Iberian lender is exposed to its troubled major shareholder and has a large exposure to dodgy Angolan loans. Its owners face a difficult refinancing this year. Authorities should demand full transparency and a quick restructuring.

Germany could live with Eurobills

June 7, 2012

Full mutualisation of euro zone government debt looks like a pipe dream for now. But pooling together short-term debt could help weak countries, without incurring the risk of moral hazard and potential losses of full-blown euro bonds.

Euro bonds will be hard for investors to swallow

June 6, 2012

Investors might be attracted to new-fangled euro bonds. Risks with peripheral sovereign debtors might be diffused and yields could look more generous. It is far from certain, however, that the small-print details will bear close inspection from buysiders.

Now prepare for the next crisis

By Edward Hadas
March 9, 2012

The euro zone has overcome enough of its fundamental weaknesses to defuse the Greek debt bomb. But the financial system is as distorted as ever. A purely financial crisis is possible in the next two years. A financially enhanced political crisis may be even harder to avoid.

Euro zone first default gives few reasons to cheer

March 9, 2012

Most Greek creditors have agreed to take a loss on their 206 bln euro holdings. The euro zone’s first restructuring should not be chaotic. But it has done away with the pretence that a sovereign’s signature is always golden. And Greece still struggles with a heavy debt load.

2012: another year of living euro-dangerously

January 5, 2012

Europe will keep the world on edge in 2012. More will be needed to shore up Italy and keep the single currency more or less intact. But the U.S. should keep recovering. And China and emerging markets may cut rates and help their consumers – and global rebalancing.

Postponing Greek pain will be costly for taxpayers

October 20, 2011

Greece needs a proper debt restructuring. Getting the country’s borrowing under control requires a serious haircut for both private creditors and euro zone governments.

Euro bonds are not the answer

By Hugo Dixon
September 19, 2011

Euro bonds are not the answer to the region's raging financial crisis.

Greek rescue: pig in a poke

By Hugo Dixon
July 26, 2011

A deal was better than a disaster. But last week's planned rescue of Greece has the astonishing by-product of increasing its debts.

Greek rescue bizarrely increases its debts

By Hugo Dixon
July 25, 2011

Listen to the politicians and one might think that Greece’s debts will fall as a result of last week’s provisional rescue by euro zone leaders and private-sector creditors. In fact, they go up.