According to Czech Prime Minister Mirek Topolanek, the selfish economic nationalism of certain eurozone countries “has deformed the joint project of the euro more than any other imaginable event”. Is Europe’s monetary union at risk as a result of narrow-minded, reckless or incompetent government responses to the financial crisis?
Undeniably, the recent sharp widening in spreads between Germany’s bond yields and those of countries such as Greece, Ireland and Portugal points to unprecedented strains in the 16-nation eurozone. Moreover, the gap in business competitiveness between Germany and many of its partners is a serious long-term concern. Read more