The financial crisis in the eurozone has persisted for more than two years now, with no end in sight. This briefing examines three options for the endgame of the euro—all of which are unappealing in their own way.
Document Highlights
The eurozone sovereign debt crisis continues to threaten the health of the global economy. And while European and international efforts to bring the crisis under control through austerity programs and bailouts have made some progress, political pressure within the eurozone is growing. Recent elections in Spain, Greece, and France were marked by deep discontent with the bailout process, and resulted in changes in government—but not a change in circumstances. Popular support for ongoing fiscal and economic adjustment is fragile and there will be further political surprises ahead, which could upset even the best-laid economic plans.
This briefing has set out three options for the endgame of the euro. All three options impose costs on one or more participants; none offers a solution in which no one suffers. And the briefing argues that the most attractive of the three options in economic terms is also the one with the least chance of occurring politically.
