Downgrading The Eurozone

Moneybox
A blog about business and economics.
Dec. 16 2011 4:32 PM

Downgrading The Eurozone

128285600
BERLIN, GERMANY - OCTOBER 06: In this photo illustration precarious towers of one Euro coins stand on October 6, 2011 in Berlin, Germany. World finance leaders are scheduled to meet in Berlin today to discuss measures on how to counter the growing European debt crisis. (Photo by Sean Gallup/Getty Images)

Photo by Sean Gallup/Getty Images

The series of downgrade warnings issued to Eurozone countries by Fitch today is not, in and of itself, particulalry consequential. But the breadth of the countries getting warnings — Belgium, Spain, Slovenia, Italy, Ireland, and Cyprus — is telling. In particular, it's Slovenia and Belgium not Slovenia and Croatia. It's Ireland and Italy, not Ireland and the United Kindgom. What these countries have in common is the euro. In other words, a set of institutional and monetary arrangements that just don't work very well.

If I were an elected official, I'd be extremely reluctant to pull the plug on this endeavor even though it was misguided from the start and isn't functioning in practice. But I'd be leaping at the opportunity to be the second prime minister to bail on the whole thing if someone else went first.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

The World

The Budget Disaster that Sabotaged the WHO’s Response to Ebola

Are the Attacks in Canada a Sign of ISIS on the Rise in the West?

PowerPoint Is the Worst, and Now It’s the Latest Way to Hack Into Your Computer

Is It Offensive When Kids Use Bad Words for Good Causes?

Fascinating Maps Based on Reddit, Craigslist, and OkCupid Data

Culturebox

The Real Secret of Serial

What reporter Sarah Koenig actually believes.

Culturebox

The Actual World

“Mount Thoreau” and the naming of things in the wilderness.

In Praise of 13th Grade: Why a Fifth Year of High School Is a Great Idea

Can Democratic Sen. Mary Landrieu Pull Off One More Louisiana Miracle?

  News & Politics
Politics
Oct. 23 2014 3:55 PM Panda Sluggers Democrats are in trouble. Time to bash China.
  Business
Business Insider
Oct. 23 2014 2:36 PM Take a Rare Peek Inside the Massive Data Centers That Power Google
  Life
Outward
Oct. 23 2014 5:08 PM Why Is an Obscure 1968 Documentary in the Opening Credits of Transparent?
  Double X
The XX Factor
Oct. 23 2014 11:33 AM Watch Little Princesses Curse for the Feminist Cause
  Slate Plus
Working
Oct. 23 2014 11:28 AM Slate’s Working Podcast: Episode 2 Transcript Read what David Plotz asked Dr. Meri Kolbrener about her workday.
  Arts
Brow Beat
Oct. 23 2014 5:08 PM What Happens When You Serve McDonald’s to Food Snobs and Tell Them It’s Organic
  Technology
Technology
Oct. 23 2014 4:36 PM Vampire Porn Mindgeek is a cautionary tale of consolidating production and distribution in a single, monopolistic owner.
  Health & Science
Bad Astronomy
Oct. 23 2014 7:30 AM Our Solar System and Galaxy … Seen by an Astronaut
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.