Extending the European Debt Discussion to Broader International Governance

Although Europe is no stranger to sovereign debt troubles, the focus of international debt governance for several decades has been on the developing world. Discussions surrounding the efficacy and appropriateness of crisis mechanisms have been shaped by this political reality. But the current focus on Europe itself may generate changes in how public and private actors view international debt governance and the legitimacy of crisis mechanisms. In these remarks, I will focus on two ways in which Europe might serve as a test case for broader governance practices. First, I will discuss the ramifications of the European Union’s potential adoption of new debt restructuring institutions for debates that emerged in the developing country context. Second, I will address what the European situation suggests about state sovereignty in the international economic realm, considering both sovereignty’s external and internal dimensions