European Redemption Fund: Unlikely to Work
June 19, 2012 5 Comments
With Greece looking no more likely to break out of its austerity/depression spiral following elections and the Spanish bank bailout having failed to restore confidence in Spain, all eyes are on the EU summit on June 28/29 for a fix for the EZ crisis. German chancellor Merkel has promised that there will be no big announcements at this summit, but a number of senior EZ policymakers have told me that there is a lot of momentum behind the idea of a European Redemption Fund (ERF). Whether it is agreed by the end of the month or not, the ERF is certainly on the table and will be discussed over the next few weeks. There are a few reasons why I don’t think this ERF can work. Read more of this post
Megan Greene is the Chief Economist at Maverick Intelligence, with a particular focus on Europe. She is also a senior fellow at the Atlantic Council, a columnist with Bloomberg and a senior research fellow at Trinity College Dublin. The opinions expressed here are her own and do not reflect those of any employers. Ms Greene offers a strictly independent voice without a political or investment agenda.
