EU 'haircut' plans rattle bondholders - papers

However, it will only be as part of a "Crisis Resolution Mechanism" that forces bondholders to share losses from any future bail-outs, according to the Telegraph. The fund must be anchored in EU law through changes to the Treaties in order to head off legal challenges at Germany's constitutional court. A draft proposal from Berlin - now serving as a working text for the European Commission - calls for "orderly insolvency" by eurozone countries in trouble. It is unclear whether the latest bond jitters in Greece, Ireland, and Portugal are linked to growing awareness of the German pla...