The CEP Default Index

The Eurozone is currently in the depths of a serious crisis, which is generally attributed to the over-indebtedness of state budgets. However, this explanation falls short of the mark. The real problem lies in the diverging development of competitiveness between the Eurostates, which has led to some countries accumulating enormous current account deficits in recent years, which have had to be financed through foreign credits. The CEP has developed an Index which examines both aspects – indebtedness trends and competitiveness trends – together. Only thus can creditworthiness trends in the individual Eurostates be identified.