At present, the probability of any eurozone country requiring such a bail-out is still very remote, but over the coming decades, ageing populations are set to create more substantial pressures on public finances.
The report says that the concept of financial rescue packages between eurozone members is explicitly forbidden under the 'no bail-out clause' of Article 104b of the Maastricht Treaty.
In addition, the debt levels of the lowest-rated eurozone sovereigns as a proportion of total eurozone GDP are much higher than the debt of most German Länder as a proportion of total GDP for the Federal Republic. Indeed, a transfer package worth 75% of Italy's general government debt (the proportion equivalent to the assistance offered to Bremen and Saarland) would cost almost as much as the entire annual nominal GDP of Spain and Finland combined.
Both in terms of national finance and of domestic politics, more creditworthy eurozone governments might view exiting the euro as preferable to footing the bill for another eurozone member's budgetary mistakes, says the report.Standard & Poors:
Little Potential For EMU Members To Bail Out Eurozone Sovereigns In Distress, Says Report