So whatever transitional challenges there may be, they don’t make the idea of a more riskadequate treatment of sovereign bonds less of a desirable ultimate aim. Also, framing the reform as a mere distribution battle between member states is deceptive. In the long run, everyone stands to benefit from a sustainable order. Instead, we need to focus on change management.
How do we smooth the transition toward a sustainable financial order? In my view, just as nobody should want a drug addict to die from going “cold turkey", we should take into account the challenges facing those who will be worst affected by a change in regulation – and offer demanding, but feasible transition schedules.