The Euro Crisis: Some Reflexions on Institutional Reform

Jean Tirole


The debate on the Euro crisis understandably has had a strong short term focus. Avoiding short‐term disaster has been tantamount and the long term sustainability issue sometimes neglected; yet, the institutional failure of the Eurozone forces us to reconsider current arrangements in order to restore credibility and sustainability. The article discusses various paths for the reform of the overall governance, from fiscal management to banking regulation, through the recent proposals to mutualize and repackage part of the Sovereign debts into a supranational one or to introduce joint‐and‐several liability.


Sovereign debt; Euro crisis; fiscal rules; Eurobonds;

JEL codes

  • E62: Fiscal Policy
  • F34: International Lending and Debt Problems
  • H63: Debt • Debt Management • Sovereign Debt

See also

Published in

Financial Stability Review (Banque de France), vol. 16, février 2012, pp. 225–242, 30 pages