Why is it that the reduction of interest rates, currency depreciation and the implementation of fiscal stimulus policies during the European debt crisis have limited the recovery of countries such as Greece and the Netherlands?

urgently seeking

The root cause of the European debt crisis is that the European Community has a unified monetary policy but not a unified fiscal policy, resulting in policy mismatch. The original policies that can regulate the economy have also lost their effectiveness. For example, Greece implemented an expansionary fiscal policy.

But if the EU still implements a tightening monetary policy, Greece will have no money to borrow, which will increase Greece's financial burden and further worsen the government's public deficit. Therefore, the EU should turn to a monetary policy that is consistent with countries such as Greece and Ireland.

is the key to solving the problem, but another problem is that Germany is the country most opposed to inflation in Europe. Germany has always insisted on opposing the use of large-scale expansionary monetary policies like the United States' EQ3. This is due to Germany's own good economic system and historical factors.

Germany and France are the core of the EU. Germany's lack of cooperation has caused the fiscal deficits of countries such as Greece to continue to worsen. However, it is impossible for Germany not to save countries such as Greece because EU free trade is the key to Germany's core competitiveness. Germany will not give up at will.

The top part of the EU is the root cause of European debt. The bottom part is the solution policy. First of all, the attitude of France and Russia is to support the EU in implementing an expansionary monetary policy to provide sufficient liquidity for the EU area. The reason is very simple. Although France’s economic development is good,

It is also burdened with a high fiscal deficit. As Russia and other export-oriented economic countries (including China) have the same reasons, the EU is a market with huge demand. A healthy EU can bring enough demand to stimulate Russia.

The economy is developing rapidly, so there is no doubt that there is no doubt that as for Germany, it depends on the current government's choice. In terms of current interests, expansionary monetary policy is definitely harmful. But if the European debt problem is not solved for a long time, the EU must disintegrate.

This is something Germany does not want.

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