Should adopt so what measure
First, the euro area has to do authentic commitment and obstruct a crisis to spread between the sovereign state, bank and market.There is 1 kind that may be, in 2012 and 2013 two years, provide margin guarantee for public obligation defer and finance in the red of Italy, Spain and Belgium.This will need to cost at most an euro-though owing to currently the serious degree(see chart) of problem, even if and so probably also spreading of not enough arrestment crisis.The funds needed can come from European finance that the lever turns to stabilize an arrangement(EFSF), can also come from European Central Bank(ECB), or is two organizations the common support, is undertaken by the former to lose risk, the latter provides liquidity.See from the long term, just such as oxford university Na thin Er John of the virtuous polarized sunglasses college(Nuffield College, Oxford)?What rice Er Powell(JohnMuellbauer) advocates publishes so conditioned'euro area common bond'(eurobond)probably is a viable way.
Secondly, euro area have to the set promote the economy increases and economy adjustment of policy.And, the policy can not only limit in the aspects of supplying.Currently, the euro area is undoubtedly suffering the bitterness of gross demand shortage.In addition, if can not resume an external competition ability, some more easily be subjected to a percussive nation will can not carry out recovery, these nation destine to sink into a vicious cycle:The public finance tightens to cause need's doing not flap, then is a jobless rate to heat up and public finance income shortage, finally Be forced to tighten further.The years before the crisis breaks out in, the surplus of euro area family, completely can drive not the deficit of financial company and government(the degree cannot compares with the former)s digest.(see chart)After crisis breaks out, the business enterprise deficit disappeared and propped up all of the demanding MLB Cap load of sons to press government in the shoulder.To want to get rid of finance in the red family and business enterprise have to enlarge expenditure to go.Government have to the set policy help reach this target.
Finally, the euro area still needs to be passed to reform over a long period of time and gets rid of oneself truely short plank.But if Germany insists putting norm public finance discipline in the first, so the reform will fail.Because the source of this crisis isn't lies in lacking public finance discipline.The financial profession is going to the whole private section-include the euro area core national bank-of irresponsible, be result in the chief criminal of crisis.If the euro area can initiate reform, it make oneself can betterly circulate, but Be not a set any more in the future continuously the country is at the small and weak member manufacturing financing institution and sovereignty obligation break contract of machine, the confidence will resume.
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Who will undertake the risk