The European debt crisis

Bruegel Director Jean Pisani-Ferry discusses two Bruegel papers on the European Debt Crisis with their authors. The first paper is a Policy Brief by Zsolt Darvas, André Sapir and Jean Pisani-Ferry himself. It proposes a comprehensive solution to the current European crisis based in three pillars: a plan to restore banking sector soundness, a resolution of sovereign debt crisis -including a reduction of the Greek public debt- and a strategy to foster growth and competitiveness. The paper provides novel estimates and analysis focusing on the current situation of Greece, Ireland, Portugal and Spain.

The second paper, a Policy Contribution by Benedicta Marzinotto, looks at the large amounts of usable Structural and Cohesion Funds available in some EU countries, and suggests that given that the Southern part of the euro area is struggling and badly needs policy instruments for economic revival, these funds should be put to good use within the framework of a temporary 2011-2013 European Fund for Economic Revival (EFER).