In a recent interview with MSNBC, former Fed Chairman Alan Greenspan, said, "At the outset of the creation of the euro in 1999, it was expected that the southern eurozone economies would behave like those in the north; the Italians would behave like Germans. They didn’t."
He later said, "Instead, northern
Europe fell into subsidizing southern Europe’s excess consumption, that is, its
current account deficits."
Greenspan predicts that the fiscal problems for the southern portion of the EU will deepen and that the northern areas will no longer ship goods to it. The standard of living for the southern zone will be lowered.
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