European or Global Sovereign Debt Crisis? Implications for Moldova

Publishing date: Wednesday, 11 January 2012
Views: 5414

Economic Commentary, no. 129

EU is mired into a deep crisis, not only financial, but also of political leadership. However, an objective analysis of the financial indicators dismantles apocalyptic scenarios, such as abolishing the Euro or dissolution of the EU. The most likely scenario of crisis resolution involves a combination, even though ‘heterodox’, of some fiscal and monetary tools meant to rebuild markets’ trust in the common currency. Some of the tools EU countries are going to use will have long-lasting implications on Moldova, as this brief analysis shows.

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