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The Coming Resolution of the European Crisis

C. Fred Bergsten and Jacob Kirkegaard ()

No PB12-1, Policy Briefs from Peterson Institute for International Economics

Abstract: The economic and financial problems in the euro area are clearly serious and plentiful. An increasing number of commentators and economists have begun to question whether the euro can survive. There are only two alternatives. Europe can jettison the monetary union or it can adopt a complementary economic union. Every policymaker in Europe knows that the collapse of the euro would be a political and economic disaster for all and thus totally unacceptable. Europe's overriding political imperative to preserve the integration project will surely drive its leaders to ultimately secure the euro and restore the economic health of the continent.

Date: 2012-01
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