In 2012, Greece was in the course of a debt crisis, and economic instability was spreading to other parts of the euro zone. The European Central Bank’s then-president Mario Draghi gave a speech that’s now credited with saving the euro. A decade on, the euro and the euro zone are still intact. But one in every of the core issues at the center of the crisis still stays. In truth, it rears its head each time the region comes under economic pressure.
In July 2012, the European Central Bank’s then-president Mario Draghi gave a speech that’s now credited with saving the euro. “The ECB is able to do whatever it takes to preserve the euro, and consider me, it’ll be enough,” he said at the moment.
Greece was in the course of a debt crisis, and economic instability was spreading to other parts of the euro zone. The ECB, the central bank for the countries which have adopted the euro, needed to act.
Ten years later, the euro and the euro zone are still intact. But one in every of the core issues at the center of the crisis still stays. In truth, it rears its head each time the region comes under economic pressure.
The crux of the issue within the euro zone is that this, in accordance with Angel Ubide from the Peterson Institute for International Economics: “Two equivalent firms or households have differing financial conditions or funding conditions, just in consequence of the country they’re positioned in. So, in that sense, your passport becomes a significant determinant of your funding conditions.”
“After all, there must be differences, but when the differences are very big, after which we will say that monetary policy has been fragmented,” he added.
So, is the euro zone prone to breaking apart? Watch the video to search out out more.
