Result of a misguided monetary policy

EU Financial aid for Greece and now perhaps also for Ireland is not the solution, writes the liberal-conservative daily Die Presse, arguing that the real problem lies in a monetary policy defined by low interest rates and the illusion that one can get into debt without consequences: "The markets where investors for a long time were able to profit from the apparent success and security of the euro have become the measure of how good Europe's monetary and economic policy is. The pressure is huge to leave everything as it is - although precisely this will lead to disaster. The current system of mutual guarantees is an invitation to dispense with cuts in state spending and farsightedness in private investment. A construct has emerged that continues to produce cheap money and will push further countries besides Greece towards ruin. It's all a sham: the life belt that is being thrown to them is so full of air that it could burst if they try to hold on to it."

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