Thomas Cooley, Ramon Marimon, 20 July 2011

The sovereign-debt crisis spreading through Europe is threatening the existence of the single currency. Meanwhile in the US, debt has been a problem for many states without threatening the US itself. This column proposes a way of preventing future crises in Europe by learning how policymakers in the US achieve fiscal prudence without loss of sovereignty.

Nicolas Véron, 23 June 2011

As the Eurozone crisis continues, politicians are blaming the markets and the markets are blaming politicians. This column argues that the uneasy relationship between the two is nothing new and that the markets have a point. It says the crisis is as much institutional as it is financial or fiscal.

Stefano Micossi, 29 May 2011

The Eurozone crisis has exposed serious flaws in the single currency’s ability to manage a crisis. This column outlines three ways that Europe’s financial assistance programmes should be changed to rectify this.

Daniel Gros, 24 May 2011

As EU leaders muddle through the Eurozone crisis, the debate about its root causes continues. The debate is important if we are to understand how to prevent future crises. This column argues that the focus on total public debt is misleading – external debt is the key to the turmoil in European economies.

Angelo Baglioni, 21 May 2011

Should Greece's creditors tackle its mountain of debt by writing some of it off or stretching out the repayment period? This column argues that both approaches are likely to have profound negative repercussions for Greece and the rest of Europe. Instead, it suggests a “market-based solution.”

Guillermo de la Dehesa, 18 May 2011

Europe’s sovereign debt crisis is a defining moment for the Eurozone. This Vox column argues that the crisis exposes weaknesses in the monetary union’s design, governance, and management – many of which were pointed out long before the euro existed. But, despite this, it adds that the Eurozone still has the ability to make good.

Jeffrey Frankel, 16 May 2011

It is a year since Greece was bailed out by EU and IMF and there are many who label it a failure. This column says that while there is plenty of blame to go around, there were three big mistakes made by the European Central Bank. Number one: Letting Greece join the euro in the first place.

Francis Longstaff, Andrew Ang, 10 May 2011

Why is the risk of default by Eurozone countries much higher than for US states? After all, both Europe and the US have experienced defaults over the past century. This column presents evidence suggesting that systemic risk is not caused by close macro integration but rather by the strength of their financial markets.

Charles Wyplosz, 29 April 2011

Restructuring is a taboo word in Brussels. This column argues that debt restructuring may be a viable option for some of the countries on Europe’s highly indebted periphery.

Gylfi Zoega, Jon Danielsson, 27 April 2011

Icelanders have voted against providing a government guarantee for claims made by the UK and the Dutch governments against Iceland’s deposit insurance fund. This column argues that the heated debates surrounding the referendum may provide a glimpse into the challenges that lie ahead for European policymakers as they attempt to allocate losses suffered by banks between the taxpayers of different countries.

Gary Evans, Peter Allen, 24 April 2011

President of the European Central Bank, Jean Claude Trichet, was once head of the Paris Club – the group of government creditors who negotiated debt restructuring during the Latin American debt crisis of the 1980s. This column asks how such experience will help Europe now that the problems are on its doorstep. It introduces a Trichet Plan for the Eurozone.

Lars Calmfors, Simon Wren-Lewis, 21 April 2011

Fiscal councils are independent bodies set up by governments to evaluate fiscal policy. As problems with debt and deficits have taken hold, they have become increasingly popular. This column looks at what existing councils do and what dangers they face. It argues that, with the right guarantees of their independence in place, independent fiscal councils can make a significant positive contribution to fiscal policy.

Giancarlo Corsetti, Michael Devereux, John Hassler, Gilles Saint-Paul, Hans-Werner Sinn, Jan-Egbert Sturm, Xavier Vives, 18 March 2011

Will the Greek rescue package be enough or is restructuring inevitable? In this column, members of the European Economic Advisory Group argue that even if the sovereign debt crisis is resolved, Greece must deal with its unsustainable current-account deficit. This requires an unenviable choice between internal and external depreciation and a government strong enough to take on the country’s rife tax evasion.

Ramon Marimon, 17 March 2011

Europe’s history is littered with crises. This column argues that the latest Eurozone crisis is the latest in a long line out of which the region has to evolve. The problem, it says, is that the current package being discussed fails to draw a line under this crisis. While the proposal is reasonable, it is not credible.

Giancarlo Corsetti, John Hassler, Gilles Saint-Paul, Hans-Werner Sinn, Jan-Egbert Sturm, Xavier Vives, Michael Devereux, 11 March 2011

The EU’s Stability and Growth Pact stipulates that no member country can have a budget deficit exceeding 3% of GDP nor can it have public debt above 60% of GDP. In this column, authors from the European Economic Advisory Group ask what went wrong, denounce suggestions of Eurobonds, and propose a new three-stage crisis mechanism: the European Stability Mechanism.

Enrique Mendoza, Atish R. Ghosh, Jonathan D. Ostry, 08 March 2011

The fiscal challenges facing advanced economies today are unprecedented. In this column, the authors re-examine the issue of debt sustainability in a large group of advanced economies, pinning down the concepts of “debt limit” and “fiscal space”. They find that – based on the historical track record of adjustment – a number of countries have either very little or no additional fiscal space.

Daniel Gros, Thomas Mayer, 11 February 2011

It is almost a year since commentators began suggesting the idea of a European Monetary Fund. This column, by two of the main proponents, argues that since then the Eurozone has created an emergency funding mechanism, but not a Fund. Europe’s leaders urgently need to take steps towards creating a credible mechanism that can deal with overly indebted countries.

Uri Dadush, Bennett Stancil, 06 February 2011

The recent fiscal problems in Greece, Ireland, Italy, Portugal, and Spain have left the single currency in need of rescue. But this column argues that this is only part of the problem. Until leaders deal with the core issues – the periphery’s lost competitiveness and misaligned economic structures – Europe’s rescue will ultimately fail.

Paolo Manasse, 05 February 2011

Recent press reports suggest that Greece and Ireland may be allowed to buy back some of their debt. This column provides an example to show that if the purpose of the restructuring is to reduce the burden of payments for the debtor and to have creditors share the losses, a unilateral partial default or a debt swap would be preferable to a buyback.

Paolo Manasse, 16 December 2010

The recent proposal by Luxembourg’s prime minister Jean-Claude Juncker and the Italian finance minister, Giulio Tremonti to provide European governments with Eurobonds has sparked debate. According to this column, it will help through financing infrastructure and increasing market liquidity. But because it requires highly-indebted countries to surrender a large chunk of fiscal sovereignty, it is a good idea whose time has not yet come.



CEPR Policy Research