Looking beyond the Euro Area Sovereign Debt Crisis

Mansoor Dailami ()
Additional contact information
Mansoor Dailami: World Bank

World Bank - Economic Premise, 2012, issue 76, 1-9

Abstract: Three years into the euro area sovereign debt crisis, investors continue to shun periphery government bonds, European banks are under severe funding pressures in both the dollar and euro private term markets, and the euro area is facing an anemic growth outlook. On the face of it, the scenario portends gloom. But upon closer examination of the inner workings of the European Union (EU) governance system, the ongoing adjustment in the banking sector, and the rewiring of the landscape of euro sovereign debt markets, the future scenario looks more balanced, particularly following the conclusion of the protracted negotiations on Greek bond exchanges under an EU-backed voluntary private sector involvement (PSI) scheme. As euro area leaders formulate significant structural reforms to deal with the continent’s longstanding fiscal and governance shortcomings, this note argues that striking a balance between market discipline and centralized rule-making is the best way forward.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://siteresources.worldbank.org/EXTPREMNET/Resources/EP76.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:prmecp:ep76

Access Statistics for this article

More articles in World Bank - Economic Premise from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Michael Jelenic ().