One is a manifestation of a weakness that has said to be inherent in monetary union, in which 17 countries share the single currency “Euro”. The other is an aspect common to other advanced economies, that is, worsening of fiscal conditions as a result of the burst of a global bubble that had been created until after the mid-2000s.
Discipline on public finance and competitiveness inevitable for monetary union did not function Let us start with the issue of “Euro”. In the euro area, which now consists of 17 countries, currency is unified under the single monetary policy, that is, the single policy rate, but, needless to say, countries remain separate.