I’m going to have to find the German version of this:
“We have to think about how, in an extreme situation, member states could become insolvent in an orderly fashion without threatening the euro zone as a whole.”
Because it makes absolutely no sense, and if this is really what she said, she’s just lost touch with reality.
I think it has to do with controlled vs uncontrolled bankruptcy.
Controlled - start talking with lenders months before and agree for them to take a haircut etc.
Uncontrolled - Ala Argentina, I can’t pay you and maybe 10 years later we can agree.