Professor Philip Lane:

That is my understanding; I have not heard anything different from that. When it comes to the unguaranteed bonds in 2010, it seems clear that if the euro system decides they do not want bondholders to be burnt, then that should be paid for at a European level; it should not fall on an individual country to protect the financial stability of Europe. However, essentially the mechanisms were not in place at that time to deliver on that.