The EU as Last-Ditch Escape Artist. YaleGlobal. Jonathan Fenby. April 1, 2013.
According to Fenby, Europe plays a dangerous game by tackling debt crises country by country. The latest economy to implode is a small nation that gained a reputation as an offshore banking center: Cypriot banks invested in Greek bonds and, after Greece imploded, required rescue, which comes at a cost. “The make-it-up-as-you-go-along style applied through the crisis, and most evident in the shambolic handling of Cyprus, is all the more dangerous because of the context surrounding the common currency,” explains author Jonathan Fenby. Structural reforms are needed. The boundary between solvency and failure may be a few percentage points of growth for some, yet lingering sense of crisis saps economic confidence. [Note: contains copyrighted material].
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