A variety of economic policy actions have reduced major risks and stabilized financial conditions in the Euro Area, although growth in the periphery is still constrained by credit bottlenecks. The region is expected to gradually pull out of recession, with growth reaching 1 percent in 2014, following GDP contractions in both 2012 and this year. However, financial reforms remain unfinished; the channels of monetary policy transmission are still impaired; there is an overhang of corporate debt in some countries; government debt levels remain too high; and wide-ranging structural reforms (beyond banking) are yet to be undertaken in many countries. SIS Professor Randall Henning will participate in a panel discussion with experts from the International Monetary Fund.
Ali Al-Eyd (Ph.D., Imperial College London) is a Senior Economist in the IMF's European Department and previously worked at Citigroup, Dresdner Kleinwort and the National Institute of Economic and Social Research. Janyne Quarm (B.A. & M.A., American University) is a Research Analyst in the Fund's European Department and previously worked at the U.S. Congress and the Treasury Department, Chile's Ministry of Foreign Relations, and Puerto Rico's Federal Affairs Administration.