Quite apart from the debt problems, Europe’s countries have systemic gaps, with different abilities to innovate and grow. A wide range of policy options is now discussed about what Europe should do to address the crisis, but unless a coherent economic policy is adopted, well beyond the EMU, the crisis will not be solved.
Nouriel Roubini in FP magazine has argued that “the current approach to the eurozone problem is not a stable equilibrium; it is an unstable disequilibrium. Kicking the can down the road, going from private to public debt to super national debt, throwing more good money after bad money, is not going to work. Read More Here