Several prominent economists have pointed out that some of the troubled countries in the Eurozone periphery may need to restructure their sovereign debts as soon as possible. Although debt restructuring will probably not spare these countries from a period of economic austerity and stagnation, it will at least provide some hope for the medium-term future. After some of the burden of the debt has been lifted, these countries will be able to channel more resources to economic recovery and will become more attractive destinations for investors. And, in any case, the sovereign debt of some of these countries, especially Greece, has reached such proportions that it is hard to see how it can be repaid without a significant restructuring.
