As Greece moves towards default, as France, Italy and Spain suffer credit downgrades, and as negotiations over last month’s fiscal treaty reach deadlock, the euro is heading for the rocks and the driving force is becoming clear. The real cause of the euro disaster is not France, Italy or Greece. It is Germany.
The fundamental problem lies not in the efficiency of the German economy, although that has contributed to the divergence in economic fortunes, but in the behaviour of German politicians and central bankers.
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