As of 2012, then, what were thought of as prerequisites for a successful operation of the euro in its initial guise are hardly present. But why has it come to this? We can answer this from a close-in, blow-by-blow perspective, or, standing back from consideration of the system in the round.
Adopting the first perspective, it is by now well understood, at least by close observers, this situation has arisen because of the interaction between financial market sentiment and the behaviour of public and private sector borrowers.