How to Contain the European Debt Crisis: Giavazzi and Kashyap
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July 20 (Bloomberg) -- With Italy now paying the same ratesas Spain to finance its debt, the European crisis has reached acritical stage.
To prevent the possible demise of the single currency, theEuropean Union now must come up with a credible plan to addressthe future of the euro area. Only a proposal that takes intoaccount the following four painful realities would be credibleand stand a chance of persuading markets to resume financing ona sustainable basis.