Europe is set to enter a long period of Adjustment （Zhou Hong el al）

Abstract：With the European debt crisis protracting for more than two years, the inadequacies of European governance structure brought on by the lingering sovereign debt crisis of Euro-zone countries has been widely recognized before the market forces, which in turn has left ample room for market speculation. Given the complexities of European political structure it is unreasonable to look upon EU to generate an immediate plan to solve the problem. Viewed from the dimensions of governance, policy formulation,market forces, power wrangling and legal framework, the question of European debt crisis will not be fully addressed in a short-term period, thus plunging Europe into relatively long period of adjustment. The formulation of EMU roadmap for reform and implementation of its growth plan will hopefully be the harbinger for the eventual resolution of the debt crisis.

IES Innovation Project Briefing，No. 21, 2012.