Council of Councils
Think Global Health
Online Store
Introduction
Over the last several decades, governments have collectively pledged to slow global warming. But despite intensified diplomacy, the world is already facing the consequences of climate…
The Eurozone Crisis: Three Things to Know
May 30, 2012 1:57 pm (EST)
- Explainer Video
Former secretary of the U.S. Treasury and CFR Co-Chair Robert E. Rubin identifies three reasons why the eurozone crisis has "reached a point of serious consequence":
More From Our Experts
- EU Leadership Stalemate: Leaders of the European Union have been "behind the curve" from the start, Rubin says. Because the politics are difficult, political leaders are unable "to adopt the kind of substantive solutions that would give them interim stability."
- Contagion: "The issues in Greece are having increasing contagion effect in Spain and even in some extent in Italy," Rubin says. "The ECB, although it can buy some time, is not an answer," he says, emphasizing the limits to the European Central Bank’s willingness to extend additional liquidity as well as limits to its ability to do so effectively without causing investors to lose confidence, causing a market crisis.
- A Triple Crisis: "The eurozone is experiencing three crises at the same time--a fiscal crisis, a banking crisis, and growth crisis," Rubin says.
"If the eurozone continues to unravel," Rubin cautions, "not only will that have very serious consequences for the eurozone, but I believe it will have serious and maybe even severe consequences for the entire global economy, including the United States."
More From Our Experts
Top Stories on CFR
The election date for the world’s largest democracy is set to begin April 19 and last six weeks. What would the results of a third term for Prime Minister Modi mean for India’s economy, democracy, and position in the Global South?
The response to the temporary closure of the Port of Baltimore—from a deadly tanker collision—demonstrates the resilience of U.S. supply chains despite fears of costly disruptions.
Terrorism and Counterterrorism
Violence around U.S. elections in 2024 could not only destabilize American democracy but also embolden autocrats across the world. Jacob Ware recommends that political leaders take steps to shore up civic trust and remove the opportunity for violence ahead of the 2024 election season.