Author(s): Vicky Pryce
Economist Vicky Pryce reflects on the current crisis in the Euro Zone - its causes and how Europe has responded, and offers her thoughts on what might and what needs to happen if the Euro is to survive in its current form. She pays particular attention to Greece, the country of her birth, the country first in the firing line in the Euro crisis and the country even now seen as Europe's 'problem child'. But as Pryce explains, the roots of the Euro's crisis are much broader than a set of profligate governments in Greece, Ireland, Portugal, Italy or Spain. The flaws in the current system were obvious to economists from the outset. Politicians ignored or downplayed these in creating the Euro and indeed made the problem worse by watering down the controls that were in place. If the Euro is to survive in the long term, even greater political and fiscal integration and cooperation will be required.
The dilemma is that the slow and unimaginative response of the German and other northern European political classes to the current crisis and the consequent enormous pain that is now being inflicted on many countries, has led to greater nationalism and made reaching the consensus necessary to pull Europe out of its crisis more, rather than less, difficult. This book will be required reading for economists, politicians, market practitioners, public servants and anyone interested in understanding the current crisis.
Vicky Pryce is an economist, and former Joint head of the United Kingdom's government economic service.