Europe’s Test—What Greece’s Debt Crisis Means for the World

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Q&A

Europe’s Test—What Greece’s Debt Crisis Means for the World

Greece’s economic imbalances are neither unprecedented nor — with help — unmanageable. Given the business, banking, and political interests in a positive outcome, Greece will either rescue itself, or be rescued.

By Uri Dadush

Published on Feb 19, 2010

Greece’s debt crisis and loss of competitiveness are raising concerns far beyond its borders, including the viability of the single currency and the recovery of the euro zone. European leaders have promised to support Greece and safeguard the euro, but resisted an immediate bailout.

In a new video Q&A, Uri Dadush analyzes the dangers this new crisis poses for other vulnerable countries and recommends actions for policy makers in Greece, Europe, and the G20 to deal with the fallout. Dadush says that while this is the biggest test the euro area has faced, Greece’s imbalances are neither unprecedented nor—with help—unmanageable. “Given the business, banking, and political interests in a positive outcome, Greece will either rescue itself, or be rescued."

About the Author

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Recent Work

Commentary
The Labors of Tsipras
- Uri Dadush
In The Media
Greece, Complacency, and the Euro
- Uri Dadush

Economy Western Europe Europe North America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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