Despite the real estate boom and low interest rates, private indebtedness in Germany and in the euro area as a whole (relative to GDP) has barely risen in recent years (Slide 26, left-hand side). [11] The development in private indebtedness thus differs markedly from the development prior to the global financial crisis.
There is no quick fix for the European sovereign debt crisis. However, the measures already taken by some countries are steps in the right direction. If this direction is maintained, if the segregation of monetary policy from fiscal policy is upheld and once a decision is taken on the monetary union’s future institutional shape, the foundations for a lasting solution should be in place.