The euro crisis: ten roots, but fewer solutions. Bruegel Policy Contribution 2012/17, October 2012

Many factors have contributed to the euro crisis. Some have been addressed by policymakers, even if belatedly, and European Union member states have been willing to improve the functioning of the euro area by agreeing to relinquish national sovereignty in some important areas. However, the most pressing issue threatening the integrity, even the existence, of the euro, has not been addressed: the deepening economic contraction in southern euro-area member states. The common interest lies in preserving the integrity of the euro area and in offering these countries improved prospects. Domestic structural reform and appropriate fiscal consolidation, wage increases and slower fiscal consolidation in economically stronger euro-area countries, a weaker euro exchange rate, debt restructuring and an investment programme should be part of the arsenal. In the medium term, more institutional change will be necessary to complement the planned overhaul of the euro area institutional framework. This will include the deployment of a euro-area economic stabilising tool, managing the overall fiscal stance of the euro area, some form of Eurobonds and measures to make euro-area level decision making bodies more effective and democratically legitimate.

Testing solutions in grass-dominated landscapes: a review of current research

In this paper we review the experimental development of agri-environment measures for use on grasslands. Sward structure has been shown to have a strong influence on birds' ability to forage in grasslands, but the effects of food abundance on foraging behaviour are poorly understood and this hinders development of grassland conservation measures. The experiments described have a dual purpose: to investigate the foraging ecology of birds on grasslands and to test candidate management measures. Most of the work featured focuses on increasing invertebrate food resources during the summer by increasing habitat heterogeneity. We also identify important gaps in the habitats provided by existing or experimental measures, where similar dual-purpose experiments are required.