This is an excellent article by Ambrose Evans-Pritchard in the Telegraph. Check it out!
Once again, the ECB cannot introduce proper QE, like the US, the UK or Japan – this is because of an effective veto from Germany.
So there are only a limited number of scenarios for Euroland:
- Continued meddling through, leading to prolonged deflation and Japan disease.
- A speculative crisis, which will trigger real QE as an emergency measure
- A speculative crisis that will lead to the breakup of the Euro