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Europe’s Debt Cancellation Would Mean Recognition of Insolvency

Europe’s Debt Cancellation Would Mean Recognition of Insolvency
A flag of the European Union waves in the wind near a traffic light showing red in Berlin on Nov. 30, 2011. Sean Gallup/Getty Images
Daniel Lacalle
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Commentary
More than 100 economists, led by French economist Thomas Piketty—the creator of some of the most absurd proposals embraced by the extreme left—on Feb. 5 published an open letter in which they called for a cancellation of government debt by the European Central Bank (ECB) “in exchange for greater public investment”—which, by the way, would be paid for with the issuance of more public debt. Fascinating.
Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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