Europe: Learning Lessons from the Crisis

In its recent update of the World Economic Outlook, the IMF forecast GDP growth of 1 percent in 2010 for the euro area, while central and eastern Europe is expected to grow at 2 percent of GDP.

During the crisis, countries inside the eurozone benefited from the relative stability of the euro. Emerging market countries ranging from Latvia to Hungary and Romania had to seek emergency assistance from the European Union and the IMF. Today, with the worst of the crisis behind us, markets are taking a new, critical look at countries within the eurozone, with Greece, Spain, and Portugal currently in the headlines. Where this reappraisal will lead remains to be seen. New challenges are also arising for many emerging economies. While the exact nature of those challenges differs substantially from country to country, there are common themes.

In a recent series of blog posts, the Director of the IMF’s European Department, Marek Belka, himself a former finance and prime minister, offers his take on the lessons policymakers should learn from the crisis. Below is a short summary of each of his six postings.

For more: IMF Survey: Europe: Learning Lessons from the Crisis