More financial pain on the way for heavily indebted countries like Italy – and Ireland

The Eurozone is not a full monetary union – it has a single currency, only one central bank and calls itself a monetary union. But if immediate action is needed in the short term to avoid fragmentation, some parts of the monetary union design are missing. Alongside the rate hike announced on Thursday, the European Central Bank (ECB) pledged to continue buying government bonds from the more indebted member countries, but left the terms vague.

Support for ailing government debtors was initially lacking in the architecture of the eurozone when the crisis last hit in 2010 and the ECB expanded its range of instruments. Fewer pieces are missing than in the years 2010 to 2012, when there was open speculation that the Greek bailout could fail and the country could exit the common currency.

https://www.independent.ie/opinion/comment/more-financial-pain-on-the-way-for-heavily-indebted-countries-such-as-italy-and-ireland-41862541.html More financial pain on the way for heavily indebted countries like Italy – and Ireland

Fry Electronics Team

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