As expected at the time, with the euro and Italy in mind, Germany chose to do whatever it takes to preserve the euro.
(Photo: dpa)
Ten years ago, Bank of America analysts evaluated the options for Italy remaining in the euro in the study Game Theory and Euro Breakup Risk Premium.
The result was unequivocal: From a German perspective, Italy would be preferable to remain, especially with a view to securing the sales markets. From an Italian point of view, on the other hand, it would be best to receive transfers first and exit afterwards.
As expected at the time, with the euro and Italy in mind, Germany chose to do whatever it takes to preserve the euro. Some critics emphasize that it is not enough. We should have entered a debt and transfer union earlier and more generously, and the European Central Bank (ECB) should have intervened even more clearly in favor of southern countries.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue