Abandoning the euro to save Europe

By Cédric Durand and Sébastien Villemot


Without a European sovereign, no real budget; and without a budget, no viable economic policy. As long as Europe does not emerge from this dilemma, the euro area will remain stuck in the vicious circle of stagnation, resentment and conflicts of responsibility. If fiscal …

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Balance sheet effects of a euro break-up

By Cédric Durand and Sébastien Villemot


When it was introduced at the turn of the millennium, the euro was widely perceived as a major achievement for Europe. The apparent economic successes, coupled with cross-country convergence of several economic indicators, fueled this sentiment of success. A couple of years later, the …

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Does France have a future in the euro area?

Talk at the EReNSEP conference in Paris


This talk tries to give answers to two important questions in the current context: to what extent is the euro an economic and political cost for France? And is an exit or dismantling of the euro possible, or would it rather be a …

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Why can’t Greece get out of debt?

Between 2007 and 2015, Greece’s public debt rose from 103% to 179% [1] of its GDP (see chart below). The debt-to-GDP ratio rose at an uninterrupted pace, except for a 12-point fall in 2012 following the restructuring imposed on private creditors, and despite the implementation of two macroeconomic adjustment …

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What strategy for internally rebalancing the euro zone?

By Sébastien Villemot and Bruno Ducoudré

The euro zone has made significant efforts to reduce its trade imbalances since the outbreak of the financial crisis. In 2009, only Germany, the Netherlands and Austria had a current account surplus, while all the other countries, in particular France, Italy and Spain, ran …

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Syriza faces the stranglehold of austerity

Following its election, the Syriza government has to face a double fiscal and banking emergency, which is the consequence of the past austerity plans and of the 2012 rescue on public funds of the European banks. A real stranglehold was set up by the Troika and the previous governments, in …

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