There is no quick fix for the European sovereign debt crisis. However, the measures already taken by some countries are steps in the right direction. If this direction is maintained, if the segregation of monetary policy from fiscal policy is upheld and once a decision is taken on the monetary union’s future institutional shape, the foundations for a lasting solution should be in place.
In contrast, in the investment portfolios of the plans in which new members are saving (new pension funds, and profit-sharing funds), there is a much higher weight given to investments abroad, stocks, and corporate bonds, which leads to higher exposure to developments in the financial markets. These investments finance economic activity and development, but are also exposed to higher volatility.