Economic situation in the euro area Policymakers in Europe learned what increased global interdependencies meant during the past few years when they had to deal with the sovereign debt crisis. The poor economic performance in Europe contributed to the world economy not recovering as fast as some wished.
So whenever I attended international policy meetings, I was pressed on what solutions European policymakers had in store for solving the crisis. I always responded that the only sustainable solution was to correct the macroeconomic imbalances in the euro area, and that this adjustment process would take some time.