Europe finds the old rules still apply

Commentary feature. The writer is Professor of Economics at Harvard University. He writes 'the spreading debt crisis is as much a product of the 'success' of the euro as of its failure. The euro was designed to be a superior debt financing machine and, to a considerable extent, it has delivered. Unfortunately, it should have come with a warning sign: Europe’s leaders were far too quick to admit members who might have been better served with a much longer probation period. The Maastricht treaty and, more importantly its implementation, was simply too forgiving, especially for countries with chequered financial histories'.

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: A bail-out for Greece is just the beginning http://www.europeansources.info/record/a-bail-out-for-greece-is-just-the-beginning/

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