Ashraf explains the notion of debt mutualisation vs. Eurobonds, stating that the former uses Eurobonds to refinance all debt EXCEEDING 60% of GDP. Eurobonds proceeds would go into a Eurozone Redemption Fund. ursuing the path of Eurobonds via maturity extensions (up to 25 years) & preferential interest rates would require a loss of sovereignty.
Ashraf also talks about the increasingly adversarial opposition pursued by the Germans (to further backing the Southern nations) French (against loss of sovereignty) and Italians (insistence to obtain time for recent reforms).
Ashraf also mentions the metrics reflecting danger, such as Spain 10yr yields surpassing7.5%, Italian yields regaining 6.50-6.75% and their spreads with German 10 year yields nearing 5.0% from their current levels of 4.6%.
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