Euro Area’s Lack of Trust Hampering Crisis Fix, De Grauwe Says

A lack of trust among euro-area members is preventing leaders from implementing a durable solution to the sovereign debt crisis, said Paul De Grauwe, a professor at the London School of Economics.

“The Germans don’t trust the southerners, the southerners don’t trust the Germans,” De Grauwe said in an interview with Tom Keene on Bloomberg Television’s “Bloomberg Surveillance” today. “As long as there is distrust there is also no willingness to allow others to decide about your fate. You can only do that if you trust each other, and that unfortunately is lacking in Europe.”