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How to Save the Euro
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This Journal editorial says Germany and France will have to pay for preserving the Eurozone one way or another. It suggests a direct approach of the German and French governments injecting capital for recapitalizing German and French banks that would take losses on bad loans to Greece, Ireland, Portugal, and Spain; combining this with bondholder haircuts for creditors, and reforms that include spreading the burden for Irish bank debt and cleaning up the cajas savings banks mess in Spain. This would mean exactly the opposite of what is taking place now, including the abandoning of individual country rescues and bailouts; which the Journal calls extending loans and pretending the problem is not with German and French banks that would have losses on the bad loans. The problem is that this places the entire burden on austerity measures in each bailout country which reduces growth and raises unemployment to levels that make the problem much worse than before. This is not happening because of a serious failure to reach agreement on the shared sacrifice and cooperation between the governments, creditor banks, the ECB and other parties in the eurozone, on a serious debt restructuring across the eurozone that would put the euro back to stability with some mechanism for serious financial discipline in eurozone states.
The logjam between the bondholders (mostly French and German banks) and the German government- 2010-2012
07/01/2011
The roots of the Eurozone financial crisis go back to the issue of who should pay for the excess lending of French and German banks. Will it be the German taxpayer or the banks that took excessive risks? German financial experts, the German government and parliament, German public opinion, are all adamantly opposed to letting the banks off without sharing at least 50% of the costs of a bailout. A review done by the European Commission in coordination witht he IMF and the ECB, shows that from May 2010 (the date for the inception of the aid program to Greece) to September 2011, $52 billion of the $91 billion loaned to Greece went to pay bondholders for bonds that came due. The July 2011 EU agreement for Greece called for 21% of losses to be allocated to the bondholders. The German government is pushing for 50% and German parlamentary leaders in Merkel's party are balking at anything less.
Grouped Articles
Wall Street Journal 07/13/2011
New York Times 04/13/2013
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
Most Greek bailout money has gone to pay off bondholders - The Washington Post
Washington Post 10/23/2011
Dexiaâs Collapse in Europe Points to Global Risks
New York Times 10/22/2011
European Officials Shaping Greek Rescue and Effort to Aid Banks
New York Times 10/22/2011
The 2011 Christian Democratic Union Party Convention in Leipzig, Germany
07/13/2011
It was at the 2003 CDU convention in Leipzig that Angela Merkel told delegates that the CDU would return Germany to it position of economic leadership in Europe.
Grouped Articles
Wall Street Journal 07/13/2011
Merkel Offers Her Election Manifesto
New York Times 06/24/2013
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
Merkel Party Seeks Euro Exit Policy
Wall Street Journal 11/15/2011
Merkel Urges Party to Help Save Euro
Wall Street Journal 11/14/2011
European Bank Chief Pushes Back
Wall Street Journal 11/19/2011
Debt Restructuring for Greece- 2010-2012
04/18/2011
Grouped Articles
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
Watch Athens, Not Paris, This Weekend
Wall Street Journal 05/04/2012
Expectations Grow for Greek Debt Restructuring
New York Times 04/18/2011
Wall Street Journal 04/20/2011
Investors Doubt Orthodoxy on Greek Debt
Wall Street Journal 05/02/2011
Greek Debt Talks Widen Divisions in the Euro Zone
Wall Street Journal 05/05/2011
Solutions to the Greece crisis.
05/27/2010
Would the solution adopted by Turkey in 2001 work? Devaluation of the currency is not an option for Greece. Turkey devalued the lira 54% in 2001.
Grouped Articles
Greece Can Learn IMF Austerity from Turkey
BusinessWeek 05/27/2010
Wall Street Journal 10/22/2010
European Debt Deal Has Flaws - News Analysis
New York Times 03/14/2011
For Greece, the Path to Restructuring Holds Pitfalls
Wall Street Journal 04/18/2011
Don't Bet on an Imminent Euro-Zone Debt Default
Wall Street Journal 04/18/2011
Expectations Grow for Greek Debt Restructuring
New York Times 04/18/2011
France's Finance Minister Lagarde on the discipline and coordination needed for the euro to work.
03/03/2010
This discipline and tight fiscal coordination would be imposed on eurozone countries as part of the effort to make the euro experiment work. Lagarde is interviewed by Carney and Jolis of the WSJ.
Grouped Articles
Wall Street Journal 03/03/2010
Charlie Rose Talks to Christine Lagarde
BusinessWeek 04/28/2010
Toward a United States of Europe
Wall Street Journal 12/18/2010
Wall Street Journal 12/20/2010
Wall Street Journal 01/14/2011
Europeâs Odd Couple: Sarkozy and Merkel
New York Times 01/13/2011
The Euro currency and the European Union
11/04/2008
The European Union currency since its inception and after the economic crisis of 2008-2009.
Grouped Articles
Euro May Be Resurfacing as a Safe Haven
Wall Street Journal 02/04/2014
New York Times 05/22/2014
Dollar Surges to 11-Year High Against Biggest Rivals
Wall Street Journal 01/04/2015
Wall Street Journal 11/04/2008
Joseph E. Stiglitz -- Farewell to the Dollar as the World's Currency of Choice
Washington Post 09/03/2009
World Bank Head Sees Dollar’s Role Diminishing
New York Times 09/29/2009
The European Union agreement for the eurozone debt crisis in Greece and other countries in July 2011
06/30/2011
The first really workable agreement was finally reached in Brussels after a year of sharp differences between the ECB, EU leaders, Greece government and opposition parties, and leaders of France, Germany and other EU countries. Fears of contagion for Italy and Spain and a sense of the dangers to the EU and the Euro currency itself led to the agreement, with the EU governments coming up with the financial support which will be channelled through the European Financial Stability Facility. The debt ceiling crisis in the U.S. may have added to the urgency to reduce nervousness in the markets about a breakdown in EU governance along with that in the U.S.
Grouped Articles
Wall Street Journal 07/13/2011
Europe Must Choose Currency or Financial Union
New York Times 07/21/2011
Greece Gets New Bailout as U.S. Nears Brink
Wall Street Journal 07/22/2011
A Guide to the New Deal in Athens: How a 'Selective Default' Works
Wall Street Journal 07/22/2011
Wall Street Journal 07/22/2011
Euro Zone's Imperfect Path to Union
Wall Street Journal 07/22/2011
The Wall Street Journal's editorials on solutions to the Eurozone financial crisis- 2011-2012
07/13/2011
Grouped Articles
Wall Street Journal 07/13/2011
Wall Street Journal 10/08/2011
Merkel Urges Party to Help Save Euro
Wall Street Journal 11/14/2011
Europe's Currency Road to Nowhere
Wall Street Journal 11/29/2011
In euro zone crisis, Germany is the reluctant savior - The Washington Post
Washington Post 12/04/2011
Wall Street Journal 04/26/2012
Debt restructuring as a solution for the European Union financial crisis
12/17/2010
Grouped Articles
Debt Restructuring: A Hit for Bondholders
Wall Street Journal 12/17/2010
Closer Fiscal Union: A Collective Guarantee
Wall Street Journal 12/17/2010
As Ireland Flails, Europe Lurches Across the Rubicon
Wall Street Journal 12/27/2010
Wall Street Journal 07/13/2011
European Leaders Seek Bold Debt Deal, Despite Hurdles
New York Times 10/21/2011
Europe's Currency Road to Nowhere
Wall Street Journal 11/29/2011
Angela Merkel's handling of the financial crises in eurozone countries
04/29/2010
The German response to the debt crisis in the eurozone and the events in 2011-2012.
Grouped Articles
As Greek Drama Plays Out, Where Is Europe?
New York Times 04/29/2010
Germany Clears Rescue for Greece
New York Times 05/03/2010
Economist 05/13/2010
Germans Respond to Merkel's 'Motherly' Side
Wall Street Journal 08/23/2013
Merkel Wins Big in German Election
Wall Street Journal 09/23/2013
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
European Central Bank policies in 2010-2012.
02/05/2008
The ECB rate changes and policy in 2010-2012.
Grouped Articles
ECB Moves Markets, Not Economy
Wall Street Journal 05/03/2013
Shares Rise on Wall Street and in Europe
New York Times 06/06/2012
Europe’s Central Banker Engineers His Economics
New York Times 02/05/2008
2 Major European Banks Keep Record-Low Rates
New York Times 11/04/2010
ECB Seeks Funds for Capital Base
Wall Street Journal 12/17/2010
Rate Rise Signaled for Euro Zone
Wall Street Journal 03/04/2011
Failure to stabilize the euro with the agreements reached by eurozone leaders including the July 2011 deal
07/13/2011
Experts suggest an approach that tackles the whole problem compared to the fragmented approach used so far based on dealing wiht the individual countries one at a time.The lack of agreement on shared sacrifice for bondholders, banks and eurozone governments.
Linked Articles
Greece Gets New Bailout as U.S. Nears Brink
Wall Street Journal 07/22/2011
Wall Street Journal 07/13/2011
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