The
deepening of the debt crisis in the euro area is due to three systemic causes
which national governments are not able to overcome on their own. First, being
members of a monetary union euro states cannot reverse the rise in public debt
(caused by the financial crisis 2008) through devaluations. At the same time,
they have no access to funds from a national central bank. Second, under
“finance-capitalistic” framework conditions, speculators systematically exploit
and strengthen the fiscal troubles in the weakest countries by driving up CDS
premia and interest rates to unsustainable levels. This (potentially) transforms
a liquidity crisis into a solvency crisis. Third, these speculative activities
widen the interest rate differentials within the euro area drastically thereby endangering
the economic and political cohesion of the EMU and even of the EU.
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