Developing Europe’s financial “safety net” in a time of crisis

Resumen

This article explains how the deterioration in public finances and the developing sovereign crisis led to the creation of a European financial “safety net”. The different financial instruments (BoP, GLF, EFSM, EFSF, ESM) are the response to specific challenges and what was feasible at a given moment. The financial assistance architecture had to adapt quickly to a rapid evolution of the crisis. The roles of the IMF, the ECB and conditionality are also discussed. The article concludes that a necessary condition for the EU to overcome the crisis is better communication and a resolute deepening of European solidarity via new tools, structures, and frameworks.

Palabras clave:

safety, sovereign, financial

Artículos más leídos del mismo autor/a

Javier Villar Burke, Creación y evolución de los instrumentos de estabilidad en la crisis financiera europea , Revista A&C: Vol. 7 Núm. 1 (2012)