The European Crisis in 2012


For much of the fourth quarter of 2011, it appeared the eurozone was doomed. Debt was piling up for several key states, and those with the ability to assist lacked the political will to do so. But the European Central Bank (ECB) stepped in in December with measures that have postponed -- not solved -- the European crisis. READ MORE

Europe’s Long-Term Growth Prospects

By Uri Dadush, Bennett Stancil

The Great Recession and subsequent debt crisis have left Europe with a deep and painful legacy. Output remains 7 percent below the pre-crisis trend; public debt levels continue to reach historic highs; banks remain fragile; and the Euro area is severely out of balance. To ensure that today’s downturn does not devolve into long-term slow growth and deflationary trends, European policy makers need to respond with far-reaching structural reforms. READ MORE