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The European redemption fund is a "smart" idea, says Rehn (Photo: ec.europa.eu)

Rehn backs 'smart' mutual debt fund

The idea of mutualising eurozone debt remains as controversial as ever but economic affairs commissioner Olli Rehn has spoken out in favour of a halfway house solution, whose authors say will solve the "impasse" between opposing ideological camps.

The idea would see countries with a sovereign debt of above 60 percent of GDP - breaching single currency rules - pooling this excess debt into a redemption fund.

The countries would be obliged to undertake structural reforms and growth-...

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