Ironically, the Greek rescue package may have increased the chance of a future sovereign default in Europe – other nations struggling under massive debt burdens are likely to find there is nobody left willing to bail them out.
As long as countries such as Greece are joined with Germany in a monetary union, this monetary union will not work.
There is something comical about current talk about a potential Greek bankruptcy.
Greece’s budget problems are not just a worry for this small economy at the periphery of the European Union.
There is a real possibility that some countries have overstretched themselves so much that they cannot service their debt in the near future.
© Dr Oliver Hartwich