Although the trigger for the European economic and financial crisis was the subprime and subsequently banking crisis in the USA, the true roots of theEuropean malaise are to be found in the structural weaknesses of the European growth and Euro area development model based on debt financing of public and private expenditure and investment. These drivers were amplified by the lack of effective economic policy mechanisms from both the monetary and fiscal sides of macro-economic management. The global financial crisis of 2007–2009 did not cause the underlying imbalances that are currently acting to tear apart the Euro area monetary and fiscal systems. Instead, it crystallised markets and public attention on the underlying core cause of the overall Euro crisis – the insolvency of the public financing system of the European Union (EU) member states.
Gurdgiev, C. (2011), "Chapter 6 Euro's crisis: From the sovereigns to the banks and back to the sovereigns", Leonard, L. and Botetzagias, I. (Ed.) Sustainable Politics and the Crisis of the Peripheries: Ireland and Greece (Advances in Ecopolitics, Vol. 8), Emerald Group Publishing Limited, Bingley, pp. 109-139. https://doi.org/10.1108/S2041-806X(2011)0000008009Download as .RIS
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