Why Berlin won't back down on euro reform
The German plan for a eurozone insolvency procedure has spooked the markets and drawn political fire. In this briefing note, Katinka Barysch explains why Berlin is unlikely to back down: the German constitutional court could forbid an extension of existing bail-out funds; making help available without the spectre of bankruptcy could encourage reckless behaviour; and the German parliament will insist on getting private investors involved in future bail-outs.
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