Joint ZEW-EconPol Lunch Debate
Reforming the Eurozone: How to Handle Sovereign Debt?
Representation of the State of Baden-Württemberg to the European Union, Rue Belliard 60 - 62, 1000 Brussels
The challenges facing the Eurozone are multifaceted, with Greece still having a long road to recovery and Italy facing a dangerous mix of a large government deficit and an already high debt level. This Lunch Debate was dedicated to discussing possible courses of action for the EU, if levels of sovereign debt become unsustainable. A special focus was placed on how an insolvency procedure for sovereigns may be designed as well as the risks and opportunities this presents.
With the Eurogroup having agreed on a reform proposal for the EMU on 3 December 2018 (which foresees improved collective action clauses and the ESM assuming the role of a moderator in creditor negotiations), the topic was of particular relevance given that the reforms are due to be implemented in spring next year.
Our Lunch Debate was based on an overview paper on possible design options for a sovereign debt restructuring mechanism, which you can see in full here.
You can see a report of the event, along with photographs, on ZEW’s website here.
Dr. Frederik Eidam (ZEW)
Prof. Dr. Friedrich Heinemann (ZEW)
Isabelle Job-Bazille, PhD (Group Crédit Agricole, Paris)
Lucio Pench (European Commission, DG ECFIN)
Dr. Werner Mussler (FAZ)