Reforming the Eurozone: How to Handle Sovereign Debt?

ZEW Lunch Debates

The challenges facing the Eurozone are multifaceted, with Greece still having a long road to recovery and Italy facing a dangerous mix of a large government deficit and an already high debt level. This Lunch Debate will be dedicated to discussing possible courses of action for the EU, if levels of sovereign debt become unsustainable. A special focus will be on how an insolvency procedure for sovereigns may be designed as well as the risks and opportunities this presents.

With the Eurogroup having agreed on a reform proposal for the EMU on 3 December 2018 (which foresees improved collective action clauses and the ESM assuming the role of a moderator in creditor negotiations), the topic will be of particular relevance given that the reforms are due to be implemented in spring this year.

Our Lunch Debate, which is jointly organised by ZEW and EconPol Europe (European Network for Economic and Fiscal Policy Research), will be based on an overview paper on possible design options for a sovereign debt restructuring mechanism, which will be published for the event.

Venue

Representation of the State of Baden-Wuerttemberg to the European Union | 60-62, rue Belliard, Brussels

28.03.2019
12:00 – 14:00 (CET)

Reforming the Eurozone: How to Handle Sovereign Debt?

The ZEW Lunch Debate focused on sovereign over-indebtedness and courses of action for the EU

The panellists (from left to right): Frederik Eidam, Lucio Pench, Werner Mussler, Isabelle Job-Bazille and Friedrich Heinemann © Philippe Veldeman

Dr. Frederik Eidam, researcher in the ZEW Research Department “International Finance and Financial Management” exchanging thoughts with co-panellist Isabelle Job-Bazille. © Philippe Veldeman

Dr. Daniela Heimberger, head of the Service Department “International Cooperation and Public Relations”, in conversation with Bodo Lehman, head of the State Representation of Baden-Württemberg in Brussels. © Philippe Veldeman

Dr. Frederik Eidam presented initial results of the ZEW/EconPol study “Towards more feasible sovereign debt restructurings in the euro area” in his introductory presentation. © Philippe Veldeman

The ZEW Lunch Debate “Reforming the Eurozone: How to Handle Sovereign Debt?“ provided interesting insights into several of the EU’s possible courses of action in the event of excessive government debt. © Philippe Veldeman

Isabelle Job-Bazille, Chief Economist of French commercial bank Crédit Agricole S.A. Group © Philippe Veldeman

Lucio Pench, Director for Fiscal Policy and the Policy Mix of the Directorate-General for Economic and Financial Affairs at the European Commission © Philippe Veldeman