Prospects for the Eurozone

Source: Getty
TV/Radio Broadcast BBC World News
Summary
As concerns rise over a potential exit by Greece and a possible bailout for Spain, the eurozone remains in a very difficult predicament, with few good options for moving forward.
Related Media and Tools
 

Speaking on BBC News, Carnegie's Uri Dadush noted both the importance of the eurozone to the global economy and the acute position its member countries find themselves in, as the euro debt crisis wears on. The eurozone is the largest trading bloc in the world—larger, as a single entity, than the United States. It could potentially withstand the departure of smaller economies, including Ireland, Portugal, and Greece (which financial markets have, to a large extent, written off already). But it would likely not remain intact if the fiscal and financial situation in Italy and Spain, among the five largest economies in the eurozone, deteriorated significantly. Dadush argued that troubled periphery countries in the eurozone have little choice but to muddle through austerity in the short and medium-term, as markets will not lend to them otherwise. The eurozone core, including Germany, and the European Central Bank, however, could do more—for example, accept somewhat higher inflation—to support the periphery’s transition.

End of document
 
Source http://carnegieendowment.org/2012/05/12/prospects-for-eurozone/asz7

Stay in the Know

Enter your email address to receive the latest Carnegie analysis in your inbox!

Personal Information
 
 
Carnegie Europe
 
Carnegie Europe Rue du Congrès, 15 1000 Brussels, Belgium Phone: +32 2 735 56 50 Fax: +32 2736 6222
Please note...

You are leaving the Carnegie–Tsinghua Center for Global Policy's website and entering another Carnegie global site.

请注意...

您离开卡内基 - 清华全球政策中心网站,进入另一个卡内基全球网站。