Moral Suasion, Financial Relief and Debt Default

Abstract

As previously discussed, the eurozone came under unprecedented strain, in particular as the credit crunch induced recession-triggered problems within the eurozone regarding sovereign debt, leading to a series of potential remedies instigated by the EU itself. This chapter consists of a critical evaluation of the solutions that have been instigated in relation to moral persuasion, financial relief measures and debt default. In contrast, the subsequent chapters of this section of the book address a series of alternative and perhaps more radical propositions concerning fiscal federalism and a European Clearing Union, and envisions a scenario in which the euro might even collapse.