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Blog Post

Marek Dabrowski

Challenges to debt sustainability in advanced economies

The gross general government debt-to-GDP ratios in many advanced economies have reached the highest levels in peacetime history and continue to grow, putting into question sovereign solvency in these economies.

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: December 8, 2016
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Policy Contribution

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Are advanced economies at risk of falling into debt traps?

One of the consequences of the global financial crisis has been rapid growth in public debt in most advanced economies. This Policy Contribution assesses the size of public debt in advanced economies and considers the potential consequences of sovereign insolvency.

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: November 10, 2016
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Opinion

Nicolas Véron

Breaking the vicious circle

Nicolas Véron argues that EU banking union can only be complete if the vast amounts of domestic sovereign debt held by many banks are reduced

By: Nicolas Véron Topic: Finance & Financial Regulation Date: October 21, 2016
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Past Event

Past Event

Does the euro area need a sovereign insolvency mechanism?

The sovereign debt crisis shook the Euro to its foundations. It soon became clear that there was no mechanism to allow a tidy insolvency of a state wishing to remain inside the euro area. To face future crises, does the EU need a sovereign insolvency mechanism?

Speakers: Jochen Andritzky, Lars Feld, Zsolt Darvas and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 12, 2016
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Past Event

Past Event

Sovereign and banking risks: what policies?

Exposures of banks towards sovereigns and vice-versa may be a source of systemic risk but how far can limiting these exposures in fact enhance or rather jeopardise global stability?

Speakers: Giorgio Barba Navaretti, Andrea Enria, Alberto Franco Pozzolo, Mario Nava, Erik F. Nielsen, André Sapir, Alexander Schulz and Guntram B. Wolff Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 5, 2016
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Blog Post

Zsolt Darvas
Pia Hüttl

Is Greek public debt unsustainable?

Greek public debt does not look sustainable if the country has to return to market borrowing at the end of the third bail-out programme, but could be sustainable if preferential ESM funding continues in the long-term. Our advice is to offer hope for Greece in the form of delayed fiscal adjustment toward a target of 2.5% of GDP primary balance and adopt various measures to ease the debt burden, for the benefit of both Greece and its official lenders.

By: Zsolt Darvas and Pia Hüttl Topic: European Macroeconomics & Governance Date: May 7, 2016
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Blog Post

Alicia García-Herrero

Why is China finding it hard to fight the markets?

Sitting on a pile of debt, China’s only way out is to deleverage: more pain now for sustainable growth later.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: August 31, 2015
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Opinion

Guntram B. Wolff

Greece: Lessons for Europe

It was inevitable that Greece would have to make cuts. Yet, if it is ever to pay back its debts, what the country needs most of all is a growth strategy.

By: Guntram B. Wolff Topic: European Macroeconomics & Governance Date: August 13, 2015
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Policy Contribution

Reform momentum and its impact on Greek growth

Reform momentum and its impact on Greek growth

The time is ripe to analyse in fine detail the conditions attached to the Greek programmes and to look in particular at the degree of structural reform implementation under the first and second programmes, the speed at which implementation took place, and the headings under which reforms were enacted, especially compared to the other euro-area programme countries.

By: Alessio Terzi Topic: European Macroeconomics & Governance Date: July 29, 2015
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Opinion

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Guntram B. Wolff

Griechenlands Schuldenlast kann und muss im Euroraum erleichtert werden

Die Verknüpfung von Schuldendienst mit der Mitgliedschaft in der Währungsunion führt zu einem Teufelskreis, der das Wachstum schwächt und damit eine Rückzahlung der Schulden unwahrscheinlicher macht. Wir schlagen vor, den Teufelskreis durch eine Bindung der Kreditzinsen an das Wachstum der griechischen Wirtschaft zu durchbrechen. Ein Griechenland ohne Wachstum soll keine Zinsen und keine Tilgung zahlen. Je stärker das Wachstum, desto höher die Zinsen und Rückzahlungen an die europäischen Gläubiger. 

By: Armin von Bogdandy, Marcel Fratzscher and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: July 22, 2015
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Blog Post

Silvia Merler

Greece budget update

Primary surplus picked up in June, but July is the key month to watch.

By: Silvia Merler Topic: European Macroeconomics & Governance Date: July 16, 2015
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Blog Post

Marek Dabrowski

Five Lessons on Greece

A reflection on the experience of Greece and other countries who have implemented rescue programs

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: July 16, 2015