Quote Originally Posted by Beskar View Post
I am guessing this is government debt though, right? While not merge all the debt into the national bank (for example, Bank of Ireland and Bank of Spain), and where there is interest involved, make the required adjustments, to cancel out the lessers debt.

As it is the Euro-zone they could even take it a step-further, instead of interlending, they could establish the "Bank of Europe", where all debts get transferred to that. Then like banks in real-life, countries like Germany who did a lot of lending, does this through the "Bank of Europe". This means all the debt is also in the one place and not all over the show. Then these debts are transferred through the nations National Banks.

Makes sense to me, anyway.
it is the transfer of risk that is the problem, why should one nation internalise the risk of another by assuming the burden of their debt?

and are the private creditors will to have their debt restructured?

and are the national economies willing to effectively print another £200 to act as a guarantee on the debt now owed to private lenders?