Crises in the Euro-zone and in banks - 'too big to fail' and 'too big to save'

Öppen Föreläsning

This year´s Tore Browaldh Lecture will focus on the
need for reforms to reduce the fragility of the financial sector, as well as to enhance growth and adjustment within each country. Are EU and national decision making bodies up to the task?

The banks holding much of the sovereign debt of the Southern Euro-zone have become both 'too big to fail' and 'too big to save'. This is of course a dilemma and it explains much of the irresolute -even inept- response of the EU to the debt problems among EMU countries. Much of the response to the crisis has been dictated by exaggerated fears of domino effects, faulty diagnoses and political pride. The problems of the Southern Euro-zone countries are mainly self-inflicted but without resolution the viability of the common currency is threatened.

Much of the EU effort has been based on the premise that the crisis is the result of fiscal profligacy but this diagnosis misses most of the problems that the monetary union is facing. This year¿s Tore Browaldh Lecture will focus on the need for reforms to reduce the fragility of the financial sector, as well as to enhance growth and adjustment within each country. Are EU and national decision making bodies up to the task?