Kenneth Rogoff is convinced that economic recovery will require some form of debt restructuring or rescheduling.

http://www.project-syndicate.org/commentary/kenneth-rogoff-is-convinced-that-economic-recovery-will-require-some-form-of-debt-restructuring-or-rescheduling

Indeed, the ECB will soon have to confront the fact that structural reforms and fiscal austerity fall far short of being a complete solution to Europe’s debt problems. In October and November, the ECB will announce the results of its bank stress tests. Because many banks hold a large volume of eurozone government debt, the results will depend very much on how the ECB assesses sovereign risk.

If the ECB grossly understates the risks, its credibility as a regulator will be badly tarnished. If it is more forthright about the risks, there is a chance that some periphery countries might have difficulty plugging the holes, and will require help from the north. One hopes that the ECB will be forthright. It is high time for a conversation on debt relief for the entire eurozone periphery.