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Debt Sustainability and Economic Convergence of Euro Area Member States: Challenges and Solutions
The Eurozone is at risk of economic stagnation and the crisis has led to the most pervasive and pronounced increase in government debt-to-GDP ratios since the Second World War. Member countries are facing vastly differing economic growth rates, with some displaying hardly any recovery since the crisis began. This note puts forward proposals aimed at fostering economic convergence while ensuring debt sustainability for the member states.