In this report, we outline how the eurozone crisis has evolved. We discuss how European Monetary Union (EMU) membership shaped both the economic crisis itself and the crisis response.
The peripheral countries are at very different stages of economic recovery and rebalancing. Growth has returned and private and public balances have improved. Unemployment and public debt levels remain high, whilst part of the rebalancing may just be cyclical.
Public sector debt was already very high and economic growth very weak in the years prior to the crisis. Private sector debt was and still is relatively low. Despite recent structural reforms, the economic outlook remains rather weak and unemployment and public debt high.