Bloomberg News

Stiglitz Says Euro May Fail Without New Institutions, ABC Says

June 24, 2012

Nobel Prize-winning economist Joseph Stiglitz said some countries may return to national currencies if economic institutions aren’t created in the euro region to make the single currency work, ABC reported.

Even as a return to national currencies used to be “unimaginable,” it could now happen, Madrid-based ABC quoted Stiglitz as saying in an interview published today.

He called for joint euro-region bonds, “massive purchases” of sovereign debt by the European Central Bank, the creation of a stabilization fund for “solidarity” among countries and a European banking system, ABC quoted him as saying. The European Investment Bank should be recapitalized so it can invest in infrastructure projects, he said.

To contact the reporter on this story: Emma Ross-Thomas in Madrid at

To contact the editor responsible for this story: Craig Stirling at

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