Summary: The Euro-crisis began in March 2010, and yet its causes and basic elements remain widely misunderstood -- including, based on their public statements, by many of Europe's leaders. Here Prof Pettis gives a clear explanation of what's happening, and of Spain's only three ways out of this crisis. Excerpt from "Three cheers for the … Continue reading Spain’s’ only three options for recovery
Summary: The last act of the EMU's death throes has begun. We already knew the two possible endings: further unification or fragmentation. Now we can see far enough to guess about when and how it will end. Probably in a crisis, in which the odds of policy errors will be high -- and the odds … Continue reading The Fate of Europe has become visible. Only how and when the break comes remains uncertain.
Summary: The Greek people have locked themselves into a no-win dilemma since the first bailout in May 2010. They want to stay in the Eurozone, but hate the pressures applied by EZ leaders as the necessary price for the aid that keeps them in the Eurozone. Eventually the resulting damage will force them to leave, but … Continue reading A note from Athens: Feeling on the ground has palpably changed
Summary: This week Europe's leaders faced a choice somewhat similar and perhaps equally momentous as America's leaders faced in 1787. But this week they chose a path that looks punitive and short-sighted, pursuing European unification but likely to generate discord and eventually fragmentation. Seldom does one act determine the future, but they might find it difficult to … Continue reading Europe has chosen a harsh future. All the paths for Greece lead into darkness.