Sustainably Overcoming the Crisis in the Euro-Zone: Progress in the Crisis-Countries and Institutional Challenges

Sustainably Overcoming the Crisis in the Euro-Zone: Progress in the Crisis-Countries and Institutional Challenges

The study is divided into three parts. Part 1 quantitatively investigates the adjustment paths of key economic variables in the European crisis countries with a particular focus on growth-relevant factors like competitiveness and the nature of fiscal consolidation. The study identifies which countries are still in a problematic state and whether fiscal consolidation has turned out to increase or decrease economic growth. In addition, it is analysed if concerns about moral hazard are justified (i.e. whether adjustment has slowed down in response to EU help being implemented).
Part 2 builds on the analyses in the first part and sketches an institutional framework for a long-lasting solution to the problem of (public) debt in Europe: the “Adjustment-Union”.
Part 3 focuses on a very important element of the needed institutional makeover of the Eurozone that so far has escaped most discussions and suggestions: the conceptualisation of a sovereign debt restructuring mechanism for the heavily-indebted members of the Eurozone.

The study "Sustainably overcoming the crises in the Euro-Zone" (in German) can be downloaded here.

Project members

Clemens Fuest

Clemens Fuest

Coordinator
ZEW-Präsident

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Mathias Dolls

Mathias Dolls

Research Associate

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Marcus Kappler

Marcus Kappler

Coordinator
Kommissarische Leitung

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Friedrich Heinemann

Friedrich Heinemann

Leitung

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Contact

President of ZEW, Clemens Fuest
Telefon +49 (0)621 1235-100
, Marcus Kappler
Telefon +49 (0)621 1235-157