European countries differ in terms of the treatment of collateral in insolvency proceedings. Some Member States have insolvency regimes that make it costly to collect collateral, while others have regimes that provide for an easy and quick collection.
If some of these risks materialise, this would jeopardise the possibility of national parliaments to control their budget. If you don’t have safeguards that the risks are under control, this would be a reckless undertaking. The “wise economists” in Germany launched the idea of a European Tilgungsfond (amortisation fund), which met the enthusiasm of the European Union. What do you think of it?