Wolfgang Munchau: Optimal Currency Areas and Governance - The Challenge of Europe (7/8)

The speaker disagrees with Jeff on the nature of the eurozone crisis, arguing it wasn't primarily fiscal except in Greece. The eurozone's political economy is toxic, with small economies forming a large closed one. The 2008 meeting post-Lehman led to a banking crisis turning into a sovereign debt crisis. The ECB's hostility and political risks make default unlikely before 2013. Future scenarios include perpetual bailouts or a fiscal union, with Spain potentially needing EU help due to its housing market issues.

What are the two points the speaker disagrees with Jeff on?

Why does the speaker believe the crisis was not primarily a fiscal crisis?

What does the speaker suggest about the political economy of the eurozone?

What was the original sin of the crisis according to the speaker?

What does the speaker predict about the handling of defaults in the eurozone?

How does the speaker describe the potential future of the eurozone bond?

What political resistance does the speaker mention in relation to austerity measures?