Moderator(s): Jean Pisani-Ferry, Jeromin Zettelmeyer

The euro area has critical weaknesses in its fiscal and financial architecture. Reforms to fix these are deadlocked due to fundamental differences among euro area nations. CEPR Policy Insight 91 “Reconciling risk sharing with market discipline: A constructive approach to euro area reform” (CEPR Policy Insight No. 91) – authored by 14 leading French and German economists suggests a way to break the deadlock. This VoxEU Debate gathers reactions to the ideas in this publication and casts the net further to collect the latest thinking on euro area reform.

Moderator(s): Richard Baldwin

The EZ Crisis is a long way from finished. The latest VoxEU eBook presents a consensus view of what caused the Crisis and why. It argues that this was a classic ‘sudden stop’ crisis – not a public-debt crisis. Excessive, cross-border lending and borrowing among EZ members in the pre-Crisis years – much of which ended up in non-traded sectors – was why Greece’s deficit deceit in 2009 could trigger such a massive crisis. The ultimate causes were policy failures that allowed the imbalances to get so large, a lack of institutions to absorb shocks at the EZ level, and poor crisis management.

Moderator(s): No moderator

How is the crisis different for developing and emerging nations, how should they and the G20 react?