The simmering sovereign debt crisis in the Euro Zone represents a looming threat to the recovery of the world economy …, notably the adoption of the common currency. Adoption of the euro led to convergence of interest rates in periphery countries …-core countries. In sum, the euro exacerbated intra-European imbalances whose unsustainability became evident in the aftermath of the …

The euro area crisis is the main external factor threatening the Swiss economy. In 2010 and 2011, the Swiss franc was … rapidly appreciating against the euro, causing a drop in exports, losses for the tourism business and a rise in unemployment …. This paper gives an overview of developments in the euro area and explains the reasons for the strength of the franc, the …