As of the end of last year, that recovery has gradually flattened out somewhat, but the likelihood of a double dip in the US seems slight. The European debt crisis: imbalances underpin negative momentum 8. Let me mention some words on the debt crisis that is currently plaguing Europe, on the causes and on the policy response.
It was clear when establishing EMU that the currency union did not satisfy the ideal conditions. A currency union should preferably be coupled with a political union, and the latter – notwithstanding the continuing European integration – is still not in place.