Escaping Europe's Catch 22

Fabian Zuleeg, Janis A. Emmanouilidis

EPC Commentary

01/2012

Download




In early 2012 the situation looks better than it has for a while, but the crisis recovery still remains very fragile. In this EPC Commentary, Fabian Zuleeg and Janis A. Emmanouilidis argue that the euro zone is caught in a Catch 22, as multiple parallel crises often require contradictory responses. National reform efforts and fiscal prudence are indispensable but they do not produce a decisive break from the downward spiral.

In order to get ahead of the curve the authors argue that two key additional elements are required to change the tide: (1) a 'New Deal' based on investment rather than transfers to help kick-start growth, especially in the weakest economies; and (2) a temporary and partial collateralisation of debt, sending a strong signal to investors that euro countries are ready and willing to integrate further, which would boost confidence in the future of the common currency.

PDF download available here


Latest publications

Europawahl 2024 – was für die EU und Deutschland auf dem Spiel steht
Janis A. Emmanouilidis and Johannes Greubel, Brussels 01/2024

Turning Fear Into Hope
Herman Van Rompuy | Fabian Zuleeg | Janis A. Emmanouilidis | Jacki Davis, EPC 11/2022

Overcoming the ambition-unity dilemma
Janis A. Emmanouilidis and Fabian Zuleeg, Brussels 10/2022

The Future is Now – What next after the Conference on the Future of Europe?
Janis A. Emmanouilidis, Taking Stock, Moving Forward: Reflections Following the Conference on the Future of Europe, Hanns Seidel Foundation & ELIAMEP, Athens 08/2022

Europe’s moment of truth: United by adversity?
Janis A. Emmanouilidis and Fabian Zuleeg, Brussels 07/2022

The von der Leyen European Commission at midterm: Same priorities, different reality
Corina Stratulat, Johannes Greubel, Perle Petit, Danielle Brady, Silvia Carta, Simon Dekeyrel, Francesco De Angelis, Janis A. Emmanouilidis, Melanie Fessler, Emily Fitzpatrick, Andrea García Rodríguez, Tommaso Grossi, Annika Hedberg, Elizabeth Kuiper, Marta Mucznik, Laura Rayner, Stefan Sipka, Brussels 06/2022

Adding Ambition to Europe's Unity
Herman Van Rompuy and Brigid Laffan et al., Project Syndicate, Brussels 06/2022

Under Construction: Citizen Participation in the European Union
Stefan Bloch, Paul Butcher, Maarten de Groot, Janis A. Emmanouilidis, Dominik Hierlemann, Corina Stratulat, Verlag Bertelsmann Stiftung / Gütersloh 05/2022

After the Conference on the Future of Europe – Moving into a new era
Janis A. Emmanouilidis, Johannes Greubel, Georg E. Riekeles and Corina Stratulat, Brussels 05/2022

Conference on the Future of Europe: What worked, what now, what next?
Janis A. Emmanouilidis, Theodora Famprikezi, Johannes Greubel, Dominik Hierlemann, Perle Petit, Georg E. Riekeles and Corina Stratulat, Brussels 02/2022


Publications