The euro crisis has come to a preliminary halt following the two massive liquidity injections by the European Central Bank (ECB) in December 2011 and February 2012. However, these ECB interventions and the double haircut for private bondholders of Greek debt have not brought sustained stability. Moreover, the new Fiscal Compact adopted in December 2011 by twenty-five European Union (EU) countries is not a convincing remedy for the problems of the euro area. Indeed, the euro summit diplomacy of 2011-2012 has largely been inconsistent and the institutional limbo of the Economic and Monetary Union calls for broader reforms.

AICGS Senior Fellow Alexander Privitera looks at the IMF/World Bank spring meetings, which will continue to keep the spotlight on Europe. Despite some recent improvements, the message for Europeans is unchanged: more homework needs to be done and the time to complete it dwindling.

Paul Maeser, an APSA Congressional Fellow for the German Marshall Fund of the United States, examines the changing role of European nations within the International Monetary Fund (IMF) as a result of the debt crisis surrounding the euro.

Policy Report 48 argues that, in a climate of economic crisis and distress, transatlantic cooperation is still essential and must be expanded, despite current differences in policy.

Claudia Dziobek is Division Chief, Government Finance Statistics, International Monetary Fund   Recent Publications on the usefulness of the IMF’s Government Finance Statistics Yearbook for policy analysis: Maps of Government for 74 countries (IMF Working Paper WP/11/127), Measuring Fiscal Decentralization (IMF Working Paper WP/11/126); and publications on Central Bank Losses (2005); the statistics of inflation …Read More

In this Transatlantic Perspectives essay, DAAD/AICGS Fellow Katharina Gnath discusses the G20’s compromise on a large-scale reform of the IMF, including the deal that transfers two of the eight European Executive Board seats to emerging market countries. Over the coming months, Europe will have to make some tough choices on the implementation of the deal, Ms. Gnath writes, and she argues that European member states should use this opportunity to improve the EU’s international macroeconomic policy and relations with the IMF.