Saturday, December 18, 2010

How to Save Europe

Nouriel Roubini, Slate
Neuschwanstein Castle in GermanyAfter the Greek and Irish crises and the spread of financial contagion to Portugal, Spain, and possibly even Italy, the eurozone is now in a serious crisis. There are three possible scenarios: muddle through, based on the current approach of "lend and pray"; breakup, with disorderly debt restructurings and possible exit of weaker members; and greater integration, implying some form of fiscal union.The muddle-through scenario"”with financing provided to member states in distress (conditional on fiscal adjustment and structural...

Source: http://www.realclearpolitics.com/2010/12/18/how_to_save_europe_247565.html

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