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Euro Crisis


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  • Miroslav Prokopijević

    (Institute for European Studies, Belgrade, Serbia)

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    It is argued the current eurozone crisis is neither new nor surprising. Fiscal discipline in the eurozone was weak from its creation in 1999, but ongoing economic prosperity limited the damage. Economic recession deepened the impact of crisis on public finance and pushed some eurozone countries to the edge of bankruptcy. Options available now are costly and painful: foreign bailouts, cuts to expenditures, higher revenues and some combination of the three. They may be conducted both inside and outside the eurozone. If eurozone problems are not solved, financial markets may turn down the euro as a currency, possibly marking the beginning of Euro-disintegration.

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    Bibliographic Info

    Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

    Volume (Year): 57 (2010)
    Issue (Month): 3 (September)
    Pages: 369-384

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    Handle: RePEc:voj:journl:v:57:y:2010:i:3:p:369-384

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    Related research

    Keywords: Eurozone; Euro; Fiscal discipline; Reform of public finance; Bailouts; Default; Bankruptcy;

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