Lazy, profligate, scheming Greeks versus honest, thrifty, industrious Germans. Southern vice versus northern virtue. For much of the news media, the euro sovereign debt crisis could be summarized in the form of a morality play opposing national or regional stereotypes. But what if the financial strains on the so-called PIGS that threaten the eurozone are a product of the eurozone itself? What if the problems of the euro, in other words, are of the euro’s own making?
A careful look at trade statistics reveals the disaster that the euro has been for the “PIGS” – and the boon that it has been for Germany.
See my new essay in the current issue of World Affairs — now available online here.