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Post Event Summary
The recent Greek election underscored the continued deterioration of the Greek economy, which has contracted by 16 percent and Greece now faces unemployment across a quarter of its population. At an AEI event on Tuesday, a panel of experts discussed the implications of Greece's election for the survival of the eurozone and the impact on the U.S.
Bruce Stokes of the Pew Global Attitudes Project addressed the public perception problems facing countries like Greece and Italy — issues which are only compounding those countries' debt problems —but also emphasized that some European leaders such as Germany’s Angela Merkel are capable of exploring creative solutions. Alessandro Leipold of the Lisbon Council then discussed how long-held tenets of European Union integration were falling apart, stressing how these tenets were testing the limits of Europe's political and financial frameworks.
Philip Suttle of the Institute of International Finance reoriented the discussion away from Greece and toward Spain's financial sector issues, accentuating how the growing financial problems in Europe have transformed into pressing political and social dilemmas. Finally, John Makin of AEI summarized the panel's conclusions by describing how Europe has passed an inflection point that makes reactive policy counterproductive. In order to forestall future crisis and restart growth, he said, leaders must make proactive decisions that preempt problems.
Greece’s second parliamentary election on June 17 — which will follow an earlier, failed attempt at creating a national government — could have critical bearing on the euro’s survival. Greece’s political prospects and position within the eurozone in the aftermath of the upcoming election could result in the country leaving the euro.
A panel of economic and financial experts will assess the likelihood of a Greek exit from the euro and will discuss the consequences of any such exit for the survival of the zone. The panel will also consider the impact of an intensified European debt crisis on the U.S. economy and the upcoming U.S. presidential election.
Full video will be posted within 24 hours.
John H. Makin, AEI
Bruce Stokes, Pew Economic Attitudes Project
Philip Suttle, Institute of International Finance
Alessandro Leipold, Lisbon Council
Desmond Lachman, AEI
For more information, please contact Daniel Hanson at Daniel.Hanson@aei.org, 202.862.5883.
For media inquiries, please contact Véronique Rodman at email@example.com, 202.862.4871.
Desmond Lachman joined AEI after serving as a managing director and chief emerging market economic strategist at Salomon Smith Barney. He previously served as deputy director of the International Monetary Fund's (IMF) Policy Development and Review Department, and was active in staff formulation of IMF policies. Lachman has written extensively on the global economic crisis, the U.S. housing market bust, the U.S. dollar and the strains in the euro area. At AEI, Lachman is focused on the global macroeconomy, global currency issues and multilateral lending agencies.
Alessandro Leipold is the chief economist at the Lisbon Council, a Brussels-based think tank and policy network. Born in Italy, Leipold has had a distinguished career in international economics and finance, banking, the European Union organizations and the International Monetary Fund (IMF), where he was acting director of the European Department until the end of 2008. In 2008, he led the IMF’s mission to the euro area, with presentations to the Eurogroup of finance ministers, and filled the position of acting director of the European Department, leading its activities during the financial crisis and the IMF’s programs in Hungary, Ukraine, Latvia and Iceland. He has given numerous presentations on international financial issues, lately centered on the global crisis and challenges and opportunities going forward.
John H. Makin is a resident scholar at AEI. He was for many years a principal at Caxton Associates, and has served as a consultant to the U.S. Department of the Treasury, the Congressional Budget Office, the Bank of Japan and the International Monetary Fund. He specializes in international finance and financial markets. He also researches the U.S. economy, including monetary policy and tax and budget issues, the Japanese economy and European economies. He is the author of numerous books and articles on financial, monetary and fiscal policy. Makin writes AEI's monthly Economic Outlook.
Bruce Stokes is the director of the Pew Economic Attitudes Project. He is the former international economics columnist for National Journal, a Washington-based public policy magazine, where he is now a contributing editor. He is also a former senior fellow at the Council on Foreign Relations. He is co-author of the book “America Against the World: How We Are Different and Why We Are Disliked” (Times Books, 2006), the 2009 German Marshall Fund Transatlantic Trends survey and co-author of numerous Pew Global Attitudes Surveys on globalization, modernization, democratization and current foreign policy concerns. Bruce is a regular commentator for Marketplace on National Public Radio. He is also the U.S. rapporteur for the Transatlantic Policy Network.
Philip Suttle is the chief economist at the Institute of International Finance (IIF). In this position, Suttle is responsible for developing the IIF’s economic work, its broad macroeconomic view and its product development. His views are expressed in his Daily Comment, Global Economic Monitor (monthly), Capital Flows to Emerging Economies (semi-annual) and one-off Research Notes. Suttle has had a long career as a global macroeconomist with a specialization in emerging markets. Before coming to the IIF, he was managing director and global head of emerging markets research at Barclays Capital. He has also worked at the World Bank, the Federal Reserve Bank of New York and the Bank of England. For most of his career, however, he worked at JP Morgan, where he helped build Morgan’s global economic research effort.