The euro-zone crisis and its impact on the global economy

Conference on 16th Jan 2013 at 9:30am

Location: Seoul, Korea

The euro-zone crisis and its impact on the global economy

This event was co-organised by Bruegel and the Korea Institute of Finance, as part of the project "Public diplomacy, policy research and outreach devoted to the European Union and EU-Korea relations".

Agenda here

15 January (Tuesday)

19:00-20:30 Welcoming Dinner

Venue: Seoul Royal Hotel

16 January (Wednesday)

9:30-9:50 Opening Remarks

  • Chang-Hyun Yun, President, Korea Institute of Finance, Korea
  • Guntram B. Wolff, Deputy Director, Bruegel, Belgium
  • Tomasz Kozlowski, Ambassador & Head, Delegation of the European Union to the Republic of Korea

9:50-10:00 Keynote Speech

  • Je-Yoon Shin, First Vice Minister, Ministry of Strategy and Finance, Korea

10:0012:00 Session 1: Anatomy of the Euro-zone Crisis (Why did it happen?)

The crisis of the euro area has revealed specific problems related to public finance sustainability and resolution of sovereign debt crises, excessive imbalances and competitiveness problems, the difficulties in supporting economic growth in countries that became under market pressure, asset price divergences and private sector debt accumulation, discrepancy between banking sector integration and the weaknesses of the EU framework for regulation, supervision, and crisis resolution, and the difficulties in making prompt and effective euro-area wide policy decisions. Which were the main causes of the crisis and what would be the ideal solutions to these issues?

Chair: Jung-Sik Kim, Professor, Economics Department, Yonsei University


  • Joon-Ho Hahm, Professor/Director, Center for International Studies, Yonsei University, Korea - presentation here
  • Myong-Hwal Lee, Senior Research Fellow/Director, Korea Institute of Finance, Korea- presentation here
  • Benedicta Marzinotto, Research Fellow, Bruegel, Belgium -presentation here
  • Stephanie Riso, Head of Unit, Fiscal Policy and Surveillance, DG ECFIN, European Commission -presentation here

12:00-13:00 Lunch Break

13:00-15:00 Session 2: Analysis of the Responses to the Euro-zone Crisis (What has been done?)

A large number of institutional changes were triggered by the euro crisis, such as various new agreements on policy surveillance, coordination, rule-enforcement, and financial assistance. The European Central Bank also introduced decisive measures to support the banking sector, as well to ease the tensions of government bond markets. How adequate were these measures – in light of the institutional and political constraints of the euro-area? At the same time market participants, and in particular, banks also responded to the crisis. Direct exposure of banks to distressed euro-area sovereigns deteriorates bank balance sheets, thereby making it more difficult for the bank to supply sufficient credit. Major turbulence in the banking sector of a euro-area country, not to mention a possible exit of a country form the euro-area, can easily lead to financial mayhem even outside the euro area due to the high-level financial linkages. What are the banks’ strategic responses to the Euro-zone crisis and how can they finance the economy under such risks?

Chair: Guntram B. Wolff, Deputy Director, Bruegel, Belgium


  • Zsolt Darvas, Research Fellow, Bruegel - presentation here
  • Mansoo Jee, Research Fellow, Korea Institute of Finance, Korea - presentation here
  • Jaewoo Lee, Chief Korea Economist, Bank of America Merrill Lynch - presentation here
  • Bart Oosterveld, Managing Director, Head of Sovereign Risk Group, Moody's Investors Service - presentation here

15:00-15:15 Coffee Break

15:15-17:15 Session 3: The Future of European and Asian Economies after the Euro-zone Crisis (What to do going forward?)

Given the size and the importance of the euro-area in trade and financial linkages, the resolution of the euro-area crisis can have major repercussions on other economies in the world, including in Asia. What are the politically realistic scenarios for the resolution of the euro-area countries? What lessons can be drawn from the Japanese lost decade and the aftermath of the 1997/98 Asian crisis for Europe? How did authorities in Asia respond to the euro-area crisis and what are the prospects for Asia considering alternative scenarios for the euro-area crisis?

Chair: Gongpil Choi, Senior Advisor, Korea Institute of Finance, Korea


  • Bon-Sung Gu, Senior Research Fellow/Director, Korea Institute of Finance, Korea - presentation here
  • Masahiro Kawai, Dean, Asian Development Bank Institute
  • John Junggun Oh, Professor, Economics Department, Korea University, Korea- presentation here
  • Guntram B. Wolff, Deputy Director, Bruegel, Belgium- presentation here

17:15-17:25 Closing Remarks

Guntram B. Wolff, Deputy Director, Bruegel, Belgium

18:00 Casual Dinner (on invitation only)

This event will be held as part of an 18-month project on ‘EU-Korea policy responses to the global financial and economic crisis and the scope for internationalisation of the financial services industry’ that has received a grant from European Commission budget line 19.05.01 ‘Public Diplomacy, Policy Research and Outreach Devoted to the European Union and EU-Korea Relations’. Opinions expressed are the authors’ alone.

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