'..A monetary union of sovereign states cannot function without the principle of no bailout, which means that every country is responsible for its policies. Financial assistance must be based on strict conditionality and be given at interest rates that do not undermine the will to reform. As such, monetary union could survive without political union.'<blockquote>'..The eurozone is based on treaties and commitments that were unfortunately broken time and again with the consequence of a deep loss of credibility. Can confidence be restored? A monetary union of sovereign states cannot function without the principle of no bailout, which means that every country is responsible for its policies. Financial assistance must be based on strict conditionality and be given at interest rates that do not undermine the will to reform. As such, monetary union could survive without political union.
After so many disheartening experiences, is it not naive to expect that credibility for such a regime can be restored? Probably yes. But if trust in treaties and commitments cannot be restored, how credible are all the much more ambitious plans in the direction of political and banking union? It would be the peak of naivety to put the future of not only the eurozone, but also of Europe, on such shaky ground.'
- Otmar Issing,
Europe’s political union is an idea worthy of satire, July 29, 2012</blockquote>
Context<blockquote>
'..present violation of law..' - Otmar Issing'..a dagger in the heart of The Mythological Great Moderation.'Government['s] .. privilege [of] .. fractional reserve banking .. a fraudulent business practice.''What other central banks have been doing must be reversed..' - Angela Merkel
Europe's Dangerous Dream of Unlimited Money - David Böcking</blockquote>