Guest post by Martin O'Dea: A simple suggestion

Martin O'Dea: Forgetting banking debt and its link to sovereign debt and resolutions required around this issue and just dealing with excessive sovereign debt, if I might. Can blocks of sovereign debt, instead of just being subsumed into Euro Bonds, not be reconstituted so that they create some of what the fiscal treaty was attempting in terms of structural balance? In other words, could sovereign debt above perhaps 80% not be repaid (interest on same etc) until the country is running a current surplus? As the country's surplus increases the amount of repayment correspondingly goes up. The design would need to be long-term and equitable in its nature but should also leverage a short-term mechanism to bring sovereigns back from the brink of default and allow current deficits be addressed without the markets focusing on sovereign default potentials.