a tasty tasty lie?

that's how they get ya.

:)

So what Is the better solution? Imho ECB debt-relief for all national governments - except greece which lied, so either kick them out for lying or lend them the money to run their government.

Remove Germany from the Eurozone, the Euro will fall making the weaker countries left in more competitive so they can trade again. Their debts should not be written off but they may need to have lower rates of interest and longer repayment periods. Also most important they have to start balancing their budgets, economic growth increasing tax revenues and lowering unemployment will help this.

There is not one solution to fit all. The solutions has to be country specific. But the most common solution would be labor market reform in the southern nations.

Any country with a trade deficit should not enter the eurozone. Greece has about EUR20bln trade deficit/year. Meaning the money flows out from the country, and the financial system dries up, since they are unable to inflate their currency.

Useless to give these countries any more money, becase it just delays the inevitable. In a few years they will be back where they were now. Currency is a natural balancing force for budget and trade imbalances. With a common currency (without common fiscal policy) it's a suicide for any import weighted countries, and is a lottery for exporters.

Germany can export anything without strengthening its currency at the expense of the importing countries. Any country who has entered the eurozone with a trade deficit is simply fool.

Solution, euro-zone break up, back to old currencies. At least for importing countries.

Good points simply made +1
Greece sell holidays (tourism) but because currency is too high people aren't going. I can't wait for cheap holidays in Greece once the Euro collapses.......for now we're going to Turkey

Rokakoma, i'd say removal of the more powerful exporting countries would be better. As their currency will deflate rather than inflate they will not attract a huge divestment before hand (and investments can wait)

At least if germany left. That would inflate the eurozone and help both the cost of labour and reduce the value of euro denomination debts (making it easier for the banks and countries to repay the current debt)

That hits two of the crisis issues (uncompetivtness and large public debt) with only one isssue left which can be resolved with the issuing of largemamoints of euro by the ECB to allow goverments to stimulate the economy rather than austerity measures which will weaken the economy...

All three issues magnify the effect on each other instead of the current triple negative effect pulling the economy down.

orathic, I could agree. It's almost irrelevent whether the exporters or the importers stay in the eurozone, but both can't. Germany's exit would be a solution probably, but that's the ast thing germans want.

With their huge export without deflation makes them a hell lot of money, and with propping up piigs it's still worth it for them I guess.

About austerity/stimulation. I don't think either is good, sometimes you need austerity, sometimes you need stimulation. Like lower banking and communication costs, public transport while you can tax fossil fuels, alcohol, etc. which has smaller contribution to the economy.

All in all, I don't think there's a general medicine, it should be done country by country, but the breakup of the eurozone is imminent I'm sure. The question is, in 1 year, or in 5 years. After, we might be on the right path.