16. Series of Working Papers
European countries are in a deep debt crisis since 2011. That closely followed on the steps of 2008-2010 economic crisis. Since 2011 many European governments in Euro Zone countries have fallen due to this crisis but the new governments also could not do much. Politician and economists alike are trying their best to control or minimize the adverse effects of the crisis. Various policy measures have been suggested, of which some have been implemented. However, unfortunately, the situation has not improved. In fact, it is going from bad to worse in most of the cases. It seems options available to policy makers are limited. In this paper, we suggest that a really ‘radical’ approach needs to be taken. Unconventional solutions may have to be considered. In this respect, we believe that Islamic approach to public sector economics may have something to offer. We present some basic tenets of that approach and taking examples from the present Euro Zone debt crisis, make an attempt to show how those could be helpful.