The trouble with the European Stability Mechanism

Author (Person)
Series Title
Series Details 5.4.11
Publication Date 05/04/2011
Content Type

The meeting of the European Council on 24-25 March 2011 focused on shoring up the battered Eurozone infrastructure through the European Stability Mechanism. This column argues that the mechanism is seriously flawed. It says it is unlikely to withstand the shock of a severe financial crisis and may even spread the damage to high-debt countries, while leaving the Eurozone in the grip of paralysing vetoes. is a policy portal set up by the Centre for Economic Policy Research in conjunction with a consortium of national sites, including the Italian site LaVoce, the French site Telos and the Spanish site Sociedad Abierta. Vox aims to promote research-based policy analysis and commentary by leading scholars. The intended audience is economists in governments, international organisations, academia and the private sector as well as journalists specializing in economics, finance and business.

Source Link
Related Links, 15.3.11: On the tasks of the European Stability Mechanism (by Stefano Micossi), 11.3.11: A crisis mechanism for the euro: The European Stability Mechanism, March 2011
ESO: Background information: EU agrees incomplete financial package

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Countries / Regions