New bailout funds would be senior to existing government debt (this is a standard feature of IMF rescues and bankruptcy financings)
Restructuring is a requirement in the “unexpected” instance the government in question is determined to be insolvent
Future government bonds (from 2013) will need to include terms that make restructuring less difficult
Note that these changes would require an change in the EU treaty, which in turn means a referendum in Ireland. In addition, the treaty wording change is broad, and would allow for the creation of senior e-bonds. In other words, it would represent a major step towards fiscal union.
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