Editing Holdout problem (section)

===National pride===

Governments fear damages of their status as an advanced economy, which could lead to increasing sovereign bond yields. As an example, during the [[Eurozone crisis]] the former French president [[Nicolas Sarkozy]] said: “we will show that Europeans pay their debt”. Sarkozy was aiming at declining bond yields with his statement, but showed implicitly that countries want to avoid sovereign debt restructurings for reasons of their own national pride.

Sovereign debt restructuring could be tantamount to an admission of emerging market status.