Saving the euro: the Spanish perspective

Spain is in the eye of the euro crisis storm as the most vulnerable country supposedly ‘too big to fail’. This paper looks at that crisis from the Spanish perspective, maps out the future scenarios it faces and sets a practical roadmap that can help Europe overcome the current crisis.

The paper argues that the origins of the crisis lie in the defective design of a monetary union born in haste without the proper political, monetary or fiscal institutions to support it. The system therefore needs a thorough restructuring aimed at completing the EMU with fiscal, banking and political union. Partial solutions will only aggravate the crisis.