Myth and reality about the euro crisis

"The whole eurozone strategy is predicated on the assumption that fiscal ill discipline caused this crisis," said Simon Tilford at the CER. "That is a radically incomplete analysis. ... Fiscal austerity of this order against a backdrop of recession is only going to make things worse, says Mr Tilford. By prescribing only austerity, eurozone leaders "have already dramatically exacerbated the problems in Portugal, Greece and Ireland. Now they risk making similar mistakes in Spain and Italy."