Unholy Compromise in the Eurozone and How to Mend it. WWWforEurope Working Paper No. 1

This paper reviews the causes of the ongoing crisis in the Eurozone and the policies needed to restore stability in financial markets and reassure a bewildered public. Its main message is that the EU will not overcome the crisis until it has a comprehensive and convincing set of policies in place, able to address simultaneously budgetary discipline and the sovereign debt crisis, the banking crisis, adequate liquidity provision by the ECB and dismal growth.