Event overview
On May 15th, AEI’s Desmond Luckman welcomed a panel of experts to discuss today’s potential eurozone crisis.
Charles Dallara of Partners Group USA spoke against the backdrop of the 2010-2012 eurozone crisis that nearly tore apart the monetary union. Although the eurozone ultimately avoided such a catastrophe, Dallara warned that Europe is not as prepared to deal with such a crisis as it once was.
Jacques de Larosière, former managing director of the International Monetary Fund, has stressed that the eurozone’s debt problems are worsening despite valuable adjustments across the region, and that monetary union members are He emphasized the need to maintain consistent spending levels.
UniCredit’s Pietro Carlo Padoan said the debt crisis showed the failure of the system, but also the potential for improvement and reform. He warned that the eurozone had not yet learned its lessons from the last crisis, increasing the risk of future crises.
Athanasios Orphanides of the Massachusetts Institute of Technology examined the role of the European Central Bank (ECB) in the last eurozone crisis and its role in mitigating the next one. He highlighted the potential strengths and weaknesses of the ECB’s policy framework, which could make the euro area more vulnerable to crises. The event ended with a question and answer session.
—Beatrice Lee
Event description
Now, with the eurozone economy slowing and interest rates at record levels, many southern member states such as Italy and Spain have significantly higher debt levels than they did at the time of the 2010 eurozone debt crisis. .
AEI’s Desmond Luckman and experts discuss what Greece’s experience could teach policymakers about how to avoid another eurozone debt crisis. It will also consider how best to respond if such a crisis occurs.
