Understanding Eurozone debt developments by nation
Cafiso, Gianluca. 2011 was the year the Eurozone began to buckle. The weight of debt taken on following the global financial crisis two years earlier proved too much for some member countries. This column examines how debt-to-GDP ratios increased over that period, the reasons why some economies fared better than others, and what may be […]
The Threats to Greece’s Debt Deal
Stevis, Matina. The process of imposing losses to private-sector holders of Greek debt–known as private-sector involvement or PSI–has dogged policy-makers for months. If the Greek finance minister is to be taken at his word, the first large-scale restructuring of sovereign debt of the euro area is nigh. Πηγή: The Wall Street Journal πηγή
A Bridge to Nowhere
Eichengreen, Barry. The task of officials at last week’s EU summit in Brussels can be likened to building a bridge. The fiscal and structural adjustments required of Europe’s heavily indebted economies will take time to complete. Time will be needed in Italy to get parliamentary agreement on new taxes and even more time to begin […]
Can Italy survive the financial storm?
Gros, Daniel. If Italy is too big to fail and too big to save, how can it save itself? This column suggests a survival strategy. The Italian households should finance their own government by buying its debt, and the ECB should prevent a collapse of the Italian banking system. Πηγή: Voxeu πλήρες κείμενο
Fiscal rules: Hazardous to your health?
Annunziata, Marco. As Eurozone leaders move towards fiscal integration, critics say the focus on fiscal rules will condemn countries to austerity and deep recession. This column argues that the latest proposals are not nearly so fearsome. Πηγή: Voxeu πλήρες κείμενο
How did multinational banks weather the previous perfect storm?
De Haas, Ralph, Van Lelyveld, Iman. In the current financial turmoil, does it pay to have domestically owned banks or foreign-owned ones? This column looks at the lending behaviour of multinational banks the last time financial markets were in crisis in late 2008. It concludes that while multinational banks may contribute to financial stability during […]
The ECB Fear Factor
Legrain, Philippe. Panic is beginning to overwhelm the eurozone. Italy and Spain are caught in the maelstrom. Belgium is slipping into the danger zone. As France is dragged down, the widening gap between its bond yields and Germany’s is severely testing the political partnership that has driven six decades of European integration. Πηγή: Project Syndicate […]
The eurozone and the streetlamp syndrome
Pisani-Ferry, Jean. The world was looking for a watershed in Europe. There was one at the European summit last week, but not the one expected: Britain’s isolation on treaty reform was a defining event for the future of Europe, but the agreement to rescue the euro fell short of setting the foundations for stability and […]
Depression and Democracy
Krugman, Paul. It’s time to start calling the current situation what it is: a depression. True, it’s not a full replay of the Great Depression, but that’s cold comfort. Unemployment in both America and Europe remains disastrously high. Leaders and institutions are increasingly discredited. And democratic values are under siege. Πηγή: The New York Times […]
A Summit to the Death
O’Rourke, Kevin. As many feared and most expected, the just-concluded European summit left much to be desired. Once again, Europe’s national leaders showed themselves to be in denial about what underlies the eurozone’s economic, banking, and sovereign-debt crises, and thus hopelessly unable to resolve them. Πηγή: Project Syndicate πλήρες κείμενο