Euro Zone Crisis: For Twenty More Years?


Two more decades: Wolfgang Münchau of Eurointelligence predicts (in the Financial Times) the euro zone crisis will last that much longer.

Coupled with the Federal Reserve Bank’s Jeremy Lacker lamenting the “tepid” growth in the US, Monday’s business news offered a further retreat from the optimistic tone from the week-and-a-half ago euro zone summit in Brussels.

This week, finance ministers are again Brussels-bound for talks on the debt crisis and, specifically, for discussing how to implement the measures agreed upon at the summit. Bailing out the Spanish banking sector and addressing Greece’s ongoing — one might even say chronic — economic crisis are high on the agenda.

Greek Prime Minister Antonis Samaras won a vote of confidence held on Sunday by a wide margin. Samaras has been an advocate of keeping Greece in the euro zone while renegotiating the terms of the bailout.

This stance might be mostly wishful thinking. Finance minister Yannis Stournaras said last week that an official from one of Greece’s creditors warned he would face a “very tough time” at the Brussels meeting.

Then, around noon on Monday, Greece’s deputy labor minister Nikos Nikolopoulos resigned, apparently in protest about Samaras refusing to renegotiate changes to Greece’s labor laws with the troika, the European Commission, the European Central Bank and the International Monetary Fund.

Nikolopoulos’ resignation means that three ministers have bowed out since Samaras was sworn in on June 20. (The Guardian observes that the final days of former Prime Minister George Papandreou were also rife with defections.)

At the actual meeting, ECB President Mario Draghi spoke with characteristic reserve. With stocks in all the European exchanges falling and Spain’s 10-year bond yields heading into the “danger zone” (7.1 percent), Draghi, addressing the European Parliament, spoke of the need for structural reforms: first, a banking union, then fiscal union, then economic union, then political union.

Such a gradual — leisurely — response is is what Münchau’s twenty years of euro zone crisis prediction was referring to.

The problem, explains Ian Traynor in the Guardian, is that euro zone governments are (already) pulling out of the pledges they made at the summit to put euro zone bailout funds directly into struggling banks (i.e., Spain’s) without adding to governments’ debt burdens. Germany and some other northern European (Finland) nations are saying in effect, not so fast with the bank recapitalization.

All this is why the euro zone debt crisis seems ever more likely to linger on for twenty years.

Just after my posting this, euro zone ministers agreed to a 30 billion euro bailout for Spain’s banks.


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Photo by Eoghan OLionnain


Kasia Y.
Kasia Y.5 years ago

The problem can be resolved much faster: simply fine the bankers the cost of fixing the problem. Take the money from the rich people who profited. There are trillions of dollars locked up by these sociopaths.

Pepe Pops
Calliope Muse5 years ago

I dont know much about politics,but when i saw the zeitgeist docs,I understood how the game is played..atleast..

Toby Seiler
Past Member 5 years ago

Yes Andy get it. It's a 100 year old problem of money that is debt and carries interest.

Graph $1 borrowed in 1913 at 6% average usury cost for 100 years. It almost exactly matches the total US public AND private debt. Really shows how interest on borrowed money can bring down the entire system as it goes exponential. Not mathmatically sustainable.

Think US Treasury Dollar, equal to a FED Reserve Note by law as a solution that is not nationalizing the FED ...OR flooding the world with currency made of air (causing hyperinflation).

David Howard
David Howard5 years ago

The only paragraph you need to read is the process of union ahead. That is all the Common Market was ever about, and deliberately allowing inadequate currencies into the Euro the solution was ready for when they inevitably failed. It would be a lot harder to force political union on most countries besides the hard liners without a decent excuse, and Greece is the excuse at the moment. And they could have voted against it in last month's elections but despite the riots have gone back to choosing slavery. And apart from Greece no others have the chance to vote to leave as no party is offering it.

Duane B.
.5 years ago

Thank you for sharing.

Rafael Zambrana
Rafael Z5 years ago


You are very right. We need to connect with people who can see it is the BANKING SYSTEM ITSELF where the problem is, and make a big enough group to pass on the truth that will eventually liberate us as a society.

If you check on most Mainstream Media and even Alternative Media, they all are blaming particular banks or politicians for the crisis, as if all we need is better regulations of this fraudulent system.

They are barking at the wrong tree, even if it's true those banks are not following even their own fraudulent rules, the fact is we need a totally new system where the currency creation is controlled by the community for trading, not for-profit bankers.

Check this story of VOLO, a town in Greece where they created a parallel currency that is reviving their town.

Also read the book:
DEBT; The First 5000 Years by David Graeber
where you'll find the roots of the problem and how to solve it.
Check this interview with Max Keiser, go to the second half

Joseph Belisle
Joseph Belisle5 years ago

I can hardly say more that what's already been said. We are being raped and reduced to indentured servants. Worse yet, the quest for wealth will lead to severe issues in humanities literal existance in how we treat our environment and food. The economy is important but more so is the continued survival of the human race. All is being sacrificed in the quest for wealth. And we're letting it happen.

Rafael Zambrana
Rafael Z5 years ago

What do they mean?

"The issuing power (of money) should be taken from the banks and
restore to the people, to whom it properly belongs"
"The government should create... all the currency and credit needed to satisfy
the spending power of the government and the buying power of the consumers...
Money will cease to be the Master and will then become servant of humanity"
Abraham Lincoln

"Until the control of the issue of currency and credit is restored to government and recognized as it's most conspicuous and sacred responsibility, all talk of sovereignty of Parliament and of democracy is idle and futile...Once a nation parts with the control of it's credit it matters not who makes the laws...Usury once in control will wreck any nation."
MacKenzie King,

"History records that the money changers (bankers) have used every form of abuse,
intrigue, deceit and violent means possible to maintain their control over government
by controlling Money and its issuance."
James Madison

"Permit me to issue and control
the money of a Nation,
and I care not who makes its laws
-Mayer Anselm Rothschild

"We cannot solve our problems with the same thinking
we used when we created them"
Albert Einstein

Rafael Zambrana
Rafael Z5 years ago



"The individual is handicapped by coming face to face with
a conspiracy so monstrous he cannot believe it exists."
J. Edgar Hoover FBI Director

'The study of Money, is one in which complexity is used
to evade truth, not to reveal it"
John Kenneth Galbraith

"There are two ways to conquer and enslave a nation,
One is by the sword. The other is by Debt"
John Adams

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Henry Ford

"If you want to remain slaves of the bankers and pay for the costs of
your own slavery, let them continue to create money and control the nation's credit"
Sir Josiah Stamp

"I believe that banking institutions are more dangerous than standing armies...
If the American people ever allow private banks to control the issue of currency,
the banks and corporations that will grow around them, will deprive the people of their
property until their children wake up homeless on the continent their fathers conquered"
Thomas Jefferson

"The process by which Banks create money
is so simple, that the mind is repelled"
John Kenneth Galbraith

"The issuing power (of money) should be taken from the banks and
restore to the people, to whom it properly belongs"
"The government should create... all the curr

Jamie Clemons
Jamie Clemons5 years ago

Austerity measures are designed to keep the 1% rich and in power while the rest of us suffer. Down with the rich.