Spiegel
June 23, 2011
There are plenty of ideas going around for how best to save the euro. But most importantly, politicians must finally tell their voters the truth: We must help the Greeks and it will be expensive -- for everybody involved.
After over a year of futile attempts to rescue the euro , it would be difficult for even the most ardent supporters of the common currency to avoid coming to the same conclusion: The euro zone is anything but an optimal currency area.
The level of economic productivity in the 17 member countries is simply too disparate. In the core, there are booming regions like Germany, while members on the periphery are ailing and at risk of drowning in their quagmire of debt.
On top of that, the institutional structure of the currency union doesn't have the means to successfully combat a crisis. Although the European Central Bank (ECB), which is responsible for maintaining price stability in the euro zone, is one of the world's most powerful central banks, it does not answer to a single government with one finance minister. Rather, it has to deal with a tangled mess of different bodies when it comes to protecting the euro. Decisions on the common currency are made by the Eurogroup, which comprises the finance ministers of the member states, the European Union's executive, the European Commission, and, when it comes to issues of principle, the European Council, made up of the heads of state and government of all the EU members. This cocktail of competencies makes it difficult to speak with one voice.
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