Two Alternative Plans to Avoid a Grexit

Larry Summers has recently proposed in the Financial Times a plan that could form the basis of an agreement between the Greek government, the European authorities and the International Monetary Fund (IMF). This plan is articulated around three axes: Serious policy adjustment and structural reforms including a pension reforms, an increase in VAT and a […]

Two Alternative Plans to Avoid a Grexit

Larry Summers has recently proposed in the Financial Times a plan that could form the basis of an agreement between the Greek government, the European authorities and the International Monetary Fund (IMF). This plan is articulated around three axes: Serious policy adjustment and structural reforms including a pension reforms, an increase in VAT and a […]

Greece’s Syriza Deserves the Benefit of the Doubt

The current discussions between the new Greek government and its euro area partners have raised many questions and comments on Greece’s debt level and the need for debt cancellation measures. The goal of this note is to suggest that greater importance should be given to economic growth than to debt cancellation. It is urgent to […]

A Coordinated Fiscal Response to Revive the Euro Area Economy

The worsening of the economic situation in the euro area raises serious questions about the capacity of policymakers to get the situation under control.  Member States have limited room of manoeuvre to implement a counter-cyclical budgetary policy under the Stability and Growth Pact (SGP).  The European Central Bank (ECB) is confronted the zero bound interest […]

The Euro Area Needs a Growth Stimulus Package

For several months, the outlook for the euro area has improved thanks to the positive results that have been achieved over the national and European level.  Budget deficits have decreased considerably since 2011, particularly in the countries hardest hit by the crisis.  Trade deficits of these countries have disappeared through fiscal consolidation and structural reforms […]

Boosting Growth to Restore Confidence

The eurozone has entered a vicious circle feeding on consolidation measures that weigh heavily on growth, hampering deficit reduction and requiring new adjustments to be made. Since the countries caught up in the crisis do not have the option of depreciating their currency, all they can rely on is structural reform to make their economies […]

Crisis Management Lessons from the Cyprus Crisis

The Cyprus crisis has produced a large number of negative comments about governance in the eurozone, especially with respect to the predominant influence of Germany in the negotiations, the ultimatum issued by the European Central Bank (ECB) and the weakness of the European Commission, which was unable to block the proposal that bank deposits of […]

Saving Private Euro: What if Spain Falls?

It is not just the crisis that is intensifying; so too is the debate on the potential solutions. This column proposes what to do if Spain is next to fail. The approach taken so far to save the euro – fiscal austerity, structural reform and concessional financial assistance, and stronger surveillance of economic and budget […]