Sections
Magazine
Latest Issue

Why a referendum on the death penalty might not be as far away as you think, what happens when politicians and judges pass the buck on law-making, why Britain struggles to escape the shadow of hands-off economics and the tricky moral terrain of growing babies outside of the womb. Plus Jacqueline Rose on the violence we ignore a review of Rachel Cusk’s new book

Read Now Or Checkout the archive
Previous
June 2021
May 2021
April 2021
March 2021
Events
Next Event

Watch: Managing global supply chains in a post-Covid world—current challenge or future opportunity?

Previous
What next for pensions? Why the 2020s are the crunch decade—discussion 2
Watch: How do we stop a generation from sleepwalking into retirement?
Watch: Homes for all—what new social and affordable housing can do for Britain
To the archive
Podcast
Latest Episode

The Prospect Interview #183: Why Britain is condemned to be liberal

Previous
The Prospect Interview #182: The rise of the British shock jock
The Prospect Interview #181: The life and mind of Edward Said
The Prospect Interview #180: Classical music after Covid
To the archive
Essays Magazine budget deficit Business and Economics EU Referendum Maastricht treaty

Europe’s fragile bonds

Greece is heading for default. If France and Germany decline to help, the eurozone—and Europe—could face disaster

By Wolfgang Munchau  
June 22, 2011
July 2011

Riot police guard the National Bank of Greece, Athens. Violent protests against the government’s austerity measures have paralysed the city

The eurozone is based on three pillars: loopholes, fudges and lies. They made this crisis inevitable. The propensity to fudge now makes any real resolution all but impossible, even if it contains the problem.

The fudges and loopholes stretch back to the deals that created the euro in the early 1990s. The Maastricht Treaty, in force from 1st November 1993, committed signatories to the new currency, which came into existence on January 1999. The eurozone’s advocates made promises that were…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

Wolfgang Munchau

Wolfgang Münchau is European Economic columnist for the FT and Director of eurointelligence.com

More stories by Wolfgang Munchau

More From Prospect