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.
The strong rebound of the Irish economy supported private sector deleveraging while the housing prices rebounded strongly. With the budget deficit down and political stability enduring, the situation in Ireland is set to improve further.