The financial markets may have offered a recent respite to highly indebted eurozone members but they will still be forced into early sovereign restructuring, said leading economists at the World Economic Forum in Davos.
Their warnings come as political leaders and central bankers pledged cast-iron support for the euro but stopped short of spelling out the reforms that will be necessary to stabilise the single currency.
Speaking on Thursday, Carmen Reinhart of Maryland University who has examined centuries of sovereign debt crises, said: “It is very difficult for me to look at the [eurozone] debt numbers and say a restructuring is going to be avoided.”
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