Europe’s economic crisis and the missing financial recovery
Following severe financial market turmoil and sovereign stress, the euro area economy has finally emerged from recession and is recovering. However, the pace of the recovery is slow, and in many euro area countries, economic activity remains below pre-crisis levels. The contrast with the US economy, which is more than 10 percent above its 2008 GDP level in real terms, is particularly sobering. What is missing? In his presentation, Mr. Franks will focus on the crisis legacies that are weighing on Europe’s banking and wider financial sector, and which are hindering a broader recovery. Strong policy efforts at both the national and the European level are needed to facilitate fresh lending and wider access to capital markets.
Jeffrey Franks is the Director of the IMF Europe Office and Senior Resident Representative to the European Union since March 2015. Previously, he spent nearly 3 years as mission chief for Pakistan. A 22 year veteran of the Fund, he has held numerous other assignments working mainly on Europe and Latin America, including heading the resident offices in Ukraine and Ecuador, and leading teams on Romania, France, Belgium, and Paraguay. He received his Ph.D. in Political Economy and Government from Harvard, and has Master’s degrees from Princeton and Oxford universities.