The euro is facing serious difficulties and a key problem is public perception of the European Union itself. IESE Prof. Alfredo Pastor provides a look back on the emergence of the euro zone, which began as a political project and later embraced an economic focus. While the EU remains much more than a commercial endeavor, the union cannot endure if business is bad across the entire euro zone.
This is why creditor countries have to impose tough conditions and debtor countries must follow them, provided they are given enough time to adjust. In the end, he says, Europeans will always be faced with the same question: Is it better to become even richer or to live in peace?