First, the Eurosystem cannot resolve the crisis. The causes of the crisis are structural, and are to be found at the individual member state and the European level. In an interview with the German daily newspaper Frankfurter Allgemeine Zeitung, the former IMF chief economist did not mince his words: “We have to fix the underlying structural problems.
Structural reforms, notably in the labour market, but also in the product markets and in public administration. Recapitalisation and restructuring in the banking system, enabling it to withstand the crisis and the flight of deposits, and ensuring that it now has adequate capital, provisions and collateral, i.e.