DUBLIN--(BUSINESS WIRE)--Dublin - Research and Markets (http://www.researchandmarkets.com/research/12a70fb7/oecd_economic_surv) has announced the addition of OECD Publishing 's new report "OECD Economic Surveys: Euro Area 2012" to their offering.
The euro area is experiencing a crisis related to sovereign debt in several countries. The crisis has its origins in the build-up of excessive financial, fiscal and economic imbalances in the euro area and the global credit cycle. The resolution of these imbalances has so far been incomplete, leading to a renewed bout of instability beginning in mid-2011.
There is a risk that fiscal consolidation and potential bank deleveraging may restrict economic activity before the benefits of healthier public finances and reforms to boost growth materialise. High risk-spreads and self-fulfilling expectations could lead to unsustainable debt dynamics. There is a risk of global spillovers from these developments. This calls for both short-term action and long-term reforms.
Decisive action is needed to stabilise vulnerable euro area sovereign debt markets.Fiscal consolidation, economic governance reforms and financial assistance by the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility (EFSF), as well as the future ESM (European Stability Mechanism) and IMF support, are major steps forward, even if confidence has not yet fully been restored.
Euro area stability funds should be expanded further, subject to conditionality, to provide credible support. For Greece, which is an exceptional case and had an unsustainable debt burden, debt should be restructured in a voluntary way. Bank balance sheets need to be rebuilt, while avoiding excessive deleveraging.
OECD's 2012 Economic Survey of the Euro examines recent economic developments, policy and prospects. In addition it includes special chapters cover Euro Area imbalances and Euro Area governance and structural reforms and their short-term impact.
Key Topics Covered:
- Executive summary
- Assessment and recommendations
- Chapter 1. A sustainable euro area
- Chapter 2. Structural reforms to create balanced growth and resolve imbalances
- Glossary
For more information visit http://www.researchandmarkets.com/research/12a70fb7/oecd_economic_surv
Source: OECD Publishing