The introduction of the Euro was supposed to result in further integration of the EU. To begin with this was the case, but, as we have subsequently witnessed, the Euro served only to hide the imbalances that were being built up during the boom years. The financial and economic crisis originating in the US, threatened the survival of our banks, leading to bank packages converting private debt into public debt. With the increase in public debt in the periphery EU member states in relation to GDP, the market lost faith in these member states’ ability to service their government bonds. No longer able to finance themselves on the market, Eurozone bailouts became necessary or one or several of these member states would go bankrupt and be forced to leave the Euro.
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