The Eurozone breakup debate: Uncertainty still reigns
Jens Nordvig 06 November 2012
Conversations about the breakup of the Eurozone are changing. This column argues that an 'avoid breakup at all costs' dogmatism may not be a prudent view. Getting good data may well be difficult, but any arguments about the cost of a Eurozone breakup must be compared to the ongoing cost of the status quo.
The debate about a Eurozone breakup is evolving. In the spring of 2012, political tension in Greece meant that the debate focused on ‘Grexit’. In the summer of this year, the focus shifted to Spain’s funding difficulties, especially the redenomination risk on Spanish assets. Then the ECB stepped in. Its Outright Monetary Transactions programme has since reduced sovereign funding costs in the periphery.
EU policies Europe's nations and regions Financial markets Politics and economics
Greece, Eurozone crisis, Finland, breakup