Eurozone stability only skin deep

The permanent EU crisis mechanism adopted at Germany's initiative might protect German economic growth but it won't ensure genuine stability in the Eurozone, writes the liberal conservative daily Die Presse: "Germany has an enormous interest in making sure its recovery is not jeopardised by state bankruptcies in Greece or Ireland. In such cases Berlin would bear the main burden of guarantees made until now, and would even be forced to violate the law (the no-bail-out clause). An orderly insolvency procedure for such countries would take the burden from Berlin's shoulders, create a legal framework and put the onus on banks that have earned good money from public borrowers up to now. But there's more to true stability in the Eurozone than just that. In pushing for insolvency proceedings Germany above all had its eye on the acute risks. But the plan does nothing to solve the real problem of economies that are drifting apart. As a result we will no doubt soon see an even deeper conflict of interests regarding the common monetary policy."

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