Control over state properties by countries that providefinancial aid would incentivize southern European economiesto repay their loans

TL;DRAbstract

The Eurozone’s northern leaders face a dilemma – imposing further austerity on the stricken southern economies, such as Spain, Greece and Italy may have severe consequences for the richer north, but every concession made erodes their credibility. Jasper Doomen argues for an alternative: Countries that provide financial aid to the stricken southern European economies should be given control over state properties if the borrowers do not repay their loans. This would reverse the current power relationship and encourage the countries of the south to work on improving their economies.Chris Gilson and Stuart A Brown take a look at the week in Brussels blogging.

Chat with Paper

AI Agents for this Paper