Someone reviewing the business sections of the newspapers, I think it was Jane Foley of Rabobank, made a remark which gives a stunningly simple explanation of the euro crisis.
When asked to comment on the levels of interest rates in Spain she said these rates, although high compared to some other euro countries, are just the rates Spain and Italy used to pay before the euro was created.
So that’s it then. When the euro was created every assumed that all interest rates for all euro countries should and would be the same.
But they ain’t.
Err that’s it.
