Report on the situation of the European economy: A new crisis mechanism for the Eurozone

On 22 February 2011 the European Economic Advisory Group (EEAG) at CESifo presented its tenth report on the European Economy in Brussels (EEAG Report on the European Economy 2011). The group of international economists examined in particular the debt crisis in Europe as a result of the financial crisis. This year's report includes country studies on Greece and Spain as well as a design for a crisis mechanism for the Eurozone. In addition, ways to regulate the financial sector are presented. As in the past years the EEAG also supplies an economic forecast for the European economy. The five chapters of the report are summarised in this article. The entire EEAG Report can be downloaded at http://www.cesifo-group.de/eeag.