CRF Blog

Europe and the euro

by David De La Torre

In A troubled union, The Economist reviews three books on the financial crisis in Europe: The Euro Crisis and Its Aftermath by Jean Pisani-Ferry; European Spring: Why Our Economics and Politics are in a Mess — and How to Put Them Right by Philippe Legrain; and The Trouble with Europe: Why the EU Isn’t Working — How it Can Be Reformed — What Could Take Its Place by Roger Bootle.

IS THE euro crisis over? To judge from how often the words appear in global media (down by three-quarters between early 2012 and early 2014), the answer is yes. Markets have calmed since July 2012, when the president of the European Central Bank (ECB), Mario Draghi, promised to do “whatever it takes” to save the euro. Ireland and now Portugal are climbing out of their bail-out programmes. Even Greece, where the crisis began, has just sold debt.

Yet, as these books all argue, the crisis was always about more than whether financial markets would buy government debt. [more]