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Solving the Eurozone Crisis

Eurozone debt crisis

As markets digest the results of the elections in Greece (and also France) the question still remains: how can the eurozone debt crisis be resolved?

Even if a pro-bailout coalition is formed to govern Greece, avoiding (for now) the country’s exit from the euro and the accompanying mayhem that might occur, the underlying causes of the Europe’s economic woes still need to be addressed.

There are likely a multitude of opinions on this topic, but we at Denny Ellison found one recent article particularly interesting.

Written by Nouriel Roubini and Niall Ferguson, it suggests various measures, including the direct recapitalisation of eurozone banks using non-voting preferred shares; an EU-wide deposit insurance scheme; limitations on the sizes of banks to avoid too-big-to-fail; and debt mutualisation.

 You can read the entire article by following either this link or this one.

 It will be interesting to see whether any of these measures, or something similar to them, will be implemented in the months and years ahead.

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