March 29, 2012

Vulnerable Europe Still on the Brink

Michael Boskin, Project Syndicate

AP Photo

With the likelihood of a contagious sovereign-debt implosion and European bank failures greatly reduced by the Greek debt deal and the European Central Bank’s lending program, it is time to look ahead. Where do the European Union, the eurozone, and the EU’s highly indebted countries go from here? Will Europe be able to roll back its welfare states’ biggest excesses without economic distress and social unrest toppling governments and, in the peripheral countries, undermining already-tenuous agreements with creditors?

Some good news globally will have an impact on how these questions are resolved. The United States’ economy is gradually reviving, albeit slowly by the standards of recovery from a deep recession. China, Brazil, and India have not decoupled from their...

Read Full Article ››

TAGGED: Eurozone

RECOMMENDED ARTICLES

March 26, 2012
Europe's Impotent Bailout Bazooka
Wolfgang Munchau, Financial Times
Welcome back to the Eurozone crisis. more ››
March 26, 2012
Can Asian-Style Capitalism Save the West?
Michael Schuman, Time
As you can imagine, the people out here in Asia are feeling pretty good about themselves these days. And why shouldn't they? While the U.S. and Europe struggle with debt, unemployment and sagging competitiveness, most of Asia... more ››
March 25, 2012
A World Headed for De-Globalization?
Irwin Stelzer, Weekly Standard
We may be entering an era of creeping de-globalization. It is one thing to be generous with the perceived foibles of your trading partners when your economy is growing and jobs are plentiful. It is quite another to decide to... more ››
March 27, 2012
Monti Pulls a Thatcher
Wall Street Journal
Italian Prime Minister Mario Monti has walked away from negotiations with Italy's labor unions and announced that he is going to move ahead with reforming the country's notorious employment laws—with or without union... more ››
March 28, 2012
Europe's Firewall Follies
Wall Street Journal
With Italy and Spain too big to save, squabbling over the size of the ESM looks a lot like deck-chair management. more ››