Eurozone deal 'dead on arrival' - economists

clock • 3 min read

Leading economists say politicians' agreement on the eurozone debt crisis lacks clarity and is not hard-hitting enough.

The three-pronged deal, decided late last night, includes approval of a mechanism to boost the eurozone's main bailout fund to €1tr (£880bn, a 50% haircut for Greek bondholders, and a requirement for banks to raise more capital. But economists have criticised the accord, saying it does not go far enough, and could potentially contribute to a further slowdown in economic growth. "The deal was effectively DOA (dead on arrival) and is not a solution. The leverage is too low, the insurance scheme is a con and the bank recapitalisation levels are based on what countries can afford, rather ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

IMF urges Reeves to 'refine' fiscal rules as it upgrades UK's economic outlook

IMF urges Reeves to 'refine' fiscal rules as it upgrades UK's economic outlook

To minimise policy changes

Linus Uhlig
clock 27 May 2025 • 2 min read
Bitcoin hits record high as US embraces digital currency

Bitcoin hits record high as US embraces digital currency

Backed by investors and states

Patrick Brusnahan
clock 22 May 2025 • 2 min read
UK borrowing soars past £20bn in April 2025

UK borrowing soars past £20bn in April 2025

Fiscal tightening might be 'inevitable'

Patrick Brusnahan
clock 22 May 2025 • 1 min read
Trustpilot
Loading page