These are the unfortunate facts: a number of governments will need to restructure their debts to bring them to a sustainable level; as a result, banks are going to need significant capital to absorb those losses; and, given the high level of government indebtedness across the eurozone as a whole, new sources of private funding needs to be found to cover those losses to get out of the death spiral of interdependency that eurozone governments and banks now find themselves in.
— Sever the death spiral link of banks and governments - FT.com
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