Here, it was mainly shortcomings in the framework of monetary union that laid the ground for the crisis. In order to understand these shortcomings, it is important to know the particular features of monetary union. The European monetary union is special because it combines a single monetary policy with national fiscal policies.
The monetary policy for the 17 countries of the euro area is decided by the Governing Council of the ECB in Frankfurt. However, the fiscal policies of the 17 members of the euro area is a matter for the national policymakers – each country decides itself on its own government revenues and expenditures.