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Mittwoch, 18. Februar 2015

George Irvin: What A Grexit Would Really Mean For The Eurozone

"So, is it all about German stubbornness? Yes, but a compromise on Greek finance is not the only thing that's needed. What really matters us Germany's apparent unwillingness to contemplate any change to current arrangements for the Euro. It matters little wheather one is pro- or anti-Euro. What matters is the question of joint responsibility - 'mutuality' is the preferred term. As long as individual EZ members depend exclusively on their own Euro-denominated bonds for finance (and each EZ state can be held hostage by the financial markets), the Euro cannot succeed in the long run. As I've argued elsewhere, if individual US states were dependent on EZ-style financial arrangements, the USA would long ago have ceased to exist."