Invoking a recent report by the UK Centre for Economic Policy Research (CEPR), which addresses the measures Eurozone countries need to take to guard against financial instability, the Financial Times’ chief economics commentator Martin Wolf argues in his article Mythology that blocks progress in Greece (21.04) that excessive debt hangs over the entire eurozone and not just Greece.

According to the report, Eurozone growth has been sporadic and hesitant, while concerns over returning financial instability, ruins confidence in recovery. The report’s authors suggest that “these problems are rooted further back in the Eurozone’s history than the recent crisis.” For improving the Eurozone’s architecture, the authors put forward three proposals: a one-time debt stock operation to quickly cut sovereign debt; a strengthened sovereign lending structure for the European Stability Mechanism and a change in regulation that discourage and limit the exposure of banks to sovereign debt.

Founded in 1983, the CEPR is a network of over 700 researchers based mainly in universities throughout Europe. The Centre’s goal is to promote research excellence and policy relevance in European economics.