Germany: Europe’s Pride or Europe’s Problem?
Germany, which benefited from the introduction of the euro, should boost its domestic demand to compensate for the deflationary measures taken by other countries in Europe. […]
Euro-Zone Crisis
Europe’s Debt Crisis: More Than a Fiscal Problem
Though headlines label the Euro crisis as one caused by sovereign debt, Europe’s most troubled economies are suffering from not only fiscal profligacy, but also a severe loss of competitiveness. […]
The Euro Crisis Is Bigger Than You Think
Though the eight newest EU are committed to eventually adopting the euro, they all already suffer from the problems that dragged Greece into crisis, suggesting that none of them are ready to join the Euro area yet. […]
Italian Fever
Italy has navigated the economic crisis better than many of its European neighbors, but this should not create complacency among policy makers. Unless urgent corrections are made, Italy’s economy will evolve in ways that are bound to lead to a painful crisis. […]
The U.S.’ Eurozone Problem
The economies of the United States and Europe are tightly linked via trade, investment, and financial markets. If the Euro crisis spreads, U.S. banking and export sectors will suffer. […]
Europe Bought Time and Not Much Else
Europe’s massive rescue package has bought time for its most troubled economies, but, unless these countries move forward with necessary—and deeply unpopular—reforms, the newly available money will do little to save them. […]
Can Spain Overcome the Aegean Flu?
Whether or not Spain can overcome the challenges it now faces—which stem from the same source as those in Greece—depends on how quickly and forcefully the government responds. […]
A Three-Point Plan to Save the Euro
The emergency aid for Greece buys the Euro area some valuable time, but Europe will need to enact a credible plan that addresses the situations in both Greece and other vulnerable countries if the Euro area is to survive in the long-term. […]
Is Italy the Next Greece?
Though Italy has exhibited better fiscal management than Greece, its debt level is still higher and its competitiveness has deteriorated just as sharply. To avoid its own sovereign debt crisis, Italy must raise its primary balance, cut labor costs, and enact structural reform. […]
Too Little, but Perhaps Not Too Late
The plan recently announced by European leaders to support Greece leaves many questions unanswered, and markets will likely withhold judgment on the agreement until a more credible rescue package is developed. […]