In his latest analysis of the euro area countries currently under financial market pressure (Greece, Ireland, Portugal, Spain and ItalY = GIPSY), CEPS Director Daniel Gros describes the key economic variables and mechanisms that will determine the necessary adjustment process. His key finding is that the adjustment will be particularly difficult for Greece and that failure cannot be excluded unless there is significant adjustment of wages in the private sector.
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CEPS’ EMF proposal is becoming political reality
For several months now, CEPS researchers have been developing the idea of creating an institution that can rescue eurozone countries in trouble and enforce rules to limit budget deficits and government debt. This idea has now been championed by key EU political leaders. Read our contributions here.
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