This paper describes the key economic variables and mechanisms that will determine the adjustment process in those euro area countries now under financial market pressure. (Greece, Ireland, Portugal, Spain and Italy = GIPSY). The key finding is that the adjustment will be particularly difficult...

Cover; Contents; Title; Copyright; Dedication; Introduction: May Day in Athens; Chapter 1: Now We Are Ten; Chapter 2: How to Blag Your Way into a Single Currency; Chapter 3: At Club Med the Party Never Ends; Chapter 4: The Story of the Swabian Housewife; Chapter 5: Fixing a Debt Crisis with Debt;...

In 2012, 22 EU countries signed the Fiscal Compact, an intergovernmental agreement aimed at backing EU fiscal rules with national arrangements. The main objective of the Compact was to strengthen compliance. Based on a survey of national independent fiscal institutions, we take a closer look at...