ABSTRACT
The European economy has for years struggled with the problem of bank loans, which remains unresolved in some countries, and a problem of excessive indebtedness of some countries. A controlled dismantling of the eurozone will allow the countries most affected by the crisis to get onto a path of economic growth, which will positively affect bank borrowers’ ability to pay, as well as countries’ ability to service their debt. The European banking sector will have to be restructured in any case, but dismantling the Eurozone would allow this process to conclude with a permanent return to health, because the downward spiral in which successive healthy loans go bad in a recession will be halted. Similarly, it will be easier to resolve the problem of indebtedness. Some countries will need debt reduction to get back on their feet, but the scale of this reduction and the cost to creditors will be lower than if the debtors remained in the eurozone in its current form and didn’t use the potential of their economies, suffering from high unemployment.
