Gary North writes about Europe:
The euro faces the problem that every cartel faces: cheating by its members. In a cartel of goods, members secretly sell below the agreed-upon price. In a monetary cartel, members cheat fiscally. They run up the bill, then threaten to default if the other members do not fork over the money. This is Europe's problem today. The cartel is breaking apart.
The key to any cartel is its ability to impose painful sanctions on cheaters. It is now clear that the European Union has no negative sanctions that are taken seriously by member nations. The voters in each nation can inflict negative sanctions on politicians who impose austerity programs, such as higher taxes or cuts in spending. Politicians fear voters more than they fear the EU.