For investors to be able to take responsible decisions and to demand different interest rates for different types of risks, they have to be told in a more credible manner in future that they could lose their money if they buy bonds issued by sovereigns whose fiscal policies are not sound.
And this is why, for quite a long time already, the Bundesbank has been proposing that an automatic extension of the maturity of government bonds be triggered whenever a sovereign applies for ESM assistance. As things now stand, a large share of the assistance loans are being used to pay off the original creditors.