Mohamed El-Erian: The eurozone must consider sabbaticals for some members

Mohamed El-Erian: The eurozone must consider sabbaticals for some members

 

After a long and costly delay, European officials’ narrative about the debt crisis is changing. This is the good news. The bad news is that Europe still lacks the political and technical leadership needed finally to catch up with this damaging crisis. As a result, Europe will soon be forced to consider radical options.

For too long, Europe has pretended that the crisis in its periphery was liquidity-driven rather than solvency-induced. Officials dismissed the need for debt restructuring, preferring a bail out for Greece, Ireland and Portugal that piled new debt on top of an already unsustainable burden.
http://link.ft.com/r/6NPSBB/7AAR4P/5C0ZLF/RNSZOH/7A27PG/4O/h?a1=2011&a2=7&a3=15