The eurozone’s current sovereign debt crisis has raised the question of the need for a law on insolvency to cover countries which get into trouble with debt. Switzerland has a fiscal rule which has attracted much attention as a preventative rule in the current debate. But it also has laws in place to deal with heavily indebted local authorities which could provide an example to European countries facing massive debts.

<i>Switzerland, with its debt cap, has a fiscal rule which has played a prominent role as a preventative rule in Europe’s current debate about the sovereign debt crisis. Less well known is the fact that Switzerland has a statutory regulation for heavily indebted lo...

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Dr. Christoph Schaltegger
The eurozone’s current sovereign debt crisis has again raised the question of the need for an insolvency statute for countries getting into trouble with debt
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