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The glass is still half-empty: Eurozone stability under threat of a ‘bad shock’

Micossi, Stefano, (2016), “The glass is still half-empty: Eurozone stability under threat of a ‘bad shock’”, Voxeu, 20 Αugust

Some economists are approaching a consensus that the Eurozone’s financial architecture is now resilient enough to withstand another shock similar to that of 2010-11. This column argues that such a view may be overly optimistic. Economic and financial instability persists in member states and the banking sector, and institutions to tackle a shock remain incomplete. While the Eurozone remains vulnerable to a bad shock, the blanket application of burden sharing without consideration of current economic and financial conditions is unwise.

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