6: The euro – a currency without a country

Paul De Grauwe interviewed by Viv Davies, 16 December 2011Paul De Grauwe talks to Viv Davies about the Eurozone crisis and the Brussels summit. De Grauwe suggests that the fiscal compact is incomplete and fails to address the problem of imbalances between the north and south in the Eurozone. He maintains that the ECB needs to act decisively and questions why its moral hazard considerations should not apply equally to both banks and sovereigns. They also discuss the idea of a sovereign-debt guarantee fund. The interview was recorded on 15 December 2011.