The Euro Area After Another Crisis Summit: Ignore the Elephant in the Room at Your Peril

The special summit of heads of state in the euro area on 21 July 2011 has yet again averted the imminent default of a member state. As usual, it was a last-minute deal that meets the country’s financing needs against the promise of fiscal consolidation, structural reform and privatisations. The second programme for Greece foresees less harsh lending terms, and these will also be extended to Ireland and Portugal. For instance, interest rates come down to those of the Balance of Payments Facility for non-euro member states, currently 3.5%.

[Full text of articles can be found in the Intereconomics Archive two years after the initial publication]

• Primary Source

Intereconomics: Archive http://archive.intereconomics.eu/years/

ESO: Background information: Meeting of Heads of State or Government of the Euro area, Brussels, 21 July 2011: EU leaders agree €109bn Greek bail-out http://www.europeansources.info/record/meeting-of-heads-of-state-or-government-of-the-euro-area-brussels-21-july-2011-eu-leaders-agree-e109bn-greek-bail-out/

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