Eu-Imf Assistance to Euro-Area Countries- an Early Assessment (English)

EU-IMF assistance to euro-area countries: an early assessment

BY JEAN PISANI-FERRY, ANDRÉ SAPIR AND GUNTRAM B. WOLFF

INTERNATIONAL MONETARY FUND

EUROPEAN COMMISSION

EUROPEAN CENTRAL BANK

BRU EGE L BLU E PRIN T 19

EU-IMF assistance to euro-area countries: an early assessment

BY JEAN PISANI-FERRY, ANDRÉ SAPIR AND GUNTRAM WOLFF

BRUEGEL BLUEPRINT SERIES

BRUEGEL BLUEPRINT SERIES

Volume XIX EU-IMF assistance to euro-area countries: an early assessment Jean Pisani-Ferry, André Sapir and Guntram Wolff © Bruegel 2013. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted in the original language without explicit permission provided that the source is acknowledged. Opinions expressed in this publication are those of the author(s) alone. Editor: Stephen Gardner Production: Michael T. Harrington Cover: Jean-Yves Verdu BRUEGEL 33, rue de la Charité 1210 Brussels, Belgium www.bruegel.org ISBN: 978-90-78910-30-5

Contents

About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .v Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1 2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 What is special about the crisis in the euro area? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 2.1 Varieties of crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 2.2 Balance-of-payment crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 2.3 A special set of constraints . . . ....