The inflation rates of member countries differ significantly from each other. There are countries like Greece, Italy, Spain and Portugal, which have consistently higher rates of inflation than Germany and thus build a growing competitive disadvantage now just cannot be corrected through a devaluation of their own currency. High persistent current account deficits in the previous soft-currency countries are the result.
In general, the structural adjustment of willingness in many member states is apparently limited. The global financial crisis is added but it is not the cause of the current turmoil, but only brings the problems of monetary union now even faster and more clearly to light:In the current situation, these problems culminate in the impending insolvency of the Greek state. Now solidarity is required!
However, solidarity within the European monetary union cannot be a one-way street. Anyone who has put himself through his own misconduct stability in a difficult position should not sure that he has the common currency, the other pulls affected, receive a reward in the form of financial support. This means that Greece has to solve his own problems, be it within the monetary union by structural adjustments (wage restraint, tax increases, reducing tax evasion, etc.).
In addition, this is the situation in by resignation, resulting in a devaluation and even higher interest rates due to depreciation related risk premiums. In both cases, the people cutting down and pay for it, that one has lived for years “about the situation”!Greece must therefore create the consolidation on their own or at best help from outside the monetary union. From this page, the aid may be more subject to conditions and credible sanctions than with help from the EMU partner countries “in the same boat.”
Today it is no longer about whether the monetary union is to be introduced or not. The euro is now our common currency, and everything should be done so that it remains a successful currency. The ECB and the euro have built a high trust. Quite apart from the fact, that such an action would only open the door for further irresponsible fiscal practices of other countries in the EMU.The euro may currently pass through the Greece-talk in somewhat troubled waters. A bailout of the Eurozone countries or the ECB for Greece would undermine the stability of the euro, however the long term.