The Destruction Of The Euro

[Hydrogen]

The Eurozone is bust. The deterioration of TARGET2 imbalances have been hardly noticed, but in recent months it has been alarming. Despite official denials over the years that it is a matter of concern, it is increasingly obvious that the national banks of Italy, Spain and other nations with increasing bad debts are hiding them within the TARGET2 system. The first wave of Covid-19, which is leading to bankruptcies throughout the Eurozone, is now being followed by a second wave, which will almost certainly take out a number of important banks, in which case the cross-border euro system will implode.


Introduction

If ever there was a political construct the unstated objective of which is to enslave its population, it is the European Union. Its opportunity stems from national governments which, with the exception of Germany and a few other northern states, had driven or were on the way to driving their failed states into the ground. The EU’s objectives were to support the policies of failure by corralling the accumulated wealth of the more successful nations to fund the failures in a socialistic doubling-down, and to accelerate the policies of failure to ensure that all power resides in the hands of statist looters in Brussels.

It is Ayn Rand’s vision of the socialising state as looter in action. All of surviving big business is aligned with it: those who refused to play the game have disappeared. Senior executives with extensive lobbying budgets are no longer at the beck and call of contentious consumers and have hollowed out their smaller competitors. They have opted for the easier non-contentious life of seeking favours of the looters in Brussels, enjoying the champagne and foie gras, the partying with the movers and shakers, and the protection they bribe for their businesses

It is a corrupt super-state that evolved out of American post-war policy — the child of the American Committee of United Europe. Funded and staffed by the CIA in 1948, the committee’s objectives were to ensure the European countries bought into a US-controlled NATO, in the name of stopping Stalin’s westwards expansion from the post-war boundaries. This was the official story, but it is notable how it formed a template for subsequent American control of other foreign states. It is the action of the jewel wasp that turns a cockroach into a zombie, so that its larva can subsequently feed off it.

This European cockroach is now in the final stages of its zombified existence. In Brussels they don’t realise it, but they are partying into the dawn of the next world, and they will have nowhere left to go. Outside of the Brussels hothouse and EU capitals it is hard to discern any support for a failing political system, beyond simply keeping the show on the road. The German population grumbles about lending their money to economic failures, but like any creditor deep in the hole they will remain blind to the deeper systemic problem for fear of its collapse. At the other extreme are the Greek socialists who claim Germany still owes them for their brutality and destruction seventy-five years ago. It is a Faustian pact between creditors and debtors to ignore the reality of their respective positions. It is the method of imperialism; but instead of being applied to other nations, Brussels applies imperial suppression to its own member states. And now that they been hollowed out, there is nothing left to sustain Brussels.

This is the destination they have arrived at today. Brussels and its European Parliament are nearing the end of their ridiculously expensive and pointless pig-on-pork socialising destruction. Not only have the panjandrums no one left to rob, nowhere left to go, but they have bankrupted a whole continent. Surely, the robbing of the rich and giving to the poor is close to its end. The creditors and debtors have nothing material left — money in everyone’s balance sheet will be written off through a monetary and economic collapse. It is the process of it and the destination we must analyse.

The Eurozone’s banking system is a heartbeat from collapse, as will become evident in this article. There are two basic elements involved. At the bottom there are the commercial banks with rapidly escalating non-performing loans, a phrase which hides the truth, that they are irretrievable bad debts. At the top is the Eurozone-wide settlement system, TARGET2, which is increasingly used to hide the bad debts accumulating at national levels.

Before we look at the position of the commercial banks, in order to understand how toxic the Eurozone has become we will start by exposing the dangers hidden in the settlement system.

TARGET2 — chickens are coming home to roost
The imbalances between the ECB and the national central banks in the TARGET2 Eurozone settlement system are indicative of the current situation.



Germany (light blue) is now “owed” €1.15 trillion, an amount that has escalated by 27% between January and September. At the same time, the greatest debtors, Italy, Spain and the ECB itself have increased their combined debts by €275bn to €1.3 trillion (before September’s additional deterioration for Spain and the ECB are reported — only figures up to August for them are currently available). But the most rapid deterioration for its size is in Greece’s negative balance, increasing by €45.6bn between January and August.

Is the Bundesbank worried by the increasing quantities of euros owed to it in a system that was always intended to roughly balance? Certainly. Will it publicly complain, or privately demand they be corrected? Almost certainly not. For statist systems such as the EU depend entirely on total obedience towards a common objective. All dissenters are punished, in this case by the waves of destruction that would be unleashed by any state refusing to continue to support the PIGS. TARGET2 is a devil’s pact which is in no one’s interest to break.

The imbalances are all guaranteed by the ECB. In theory, they shouldn’t exist. They partially reflect accumulating trade imbalances between member states without the balancing payment flows the other way. Additionally, imbalances arise when the ECB instructs a regional central bank to purchase bonds issued by its government and other local corporate entities. As the imbalances between national banks grew, the ECB has stopped paying for some of its bond purchases, leading to a TARGET2 deficit of €297bn at the ECB. The corresponding credits conceal the true scale of the deficits on the books of the PIGS national central banks. For example, to the extent of the ECB’s unpaid purchases of Italian debt, the Bank of Italy owes more to the other regional banks than the €546bn headline amount suggests.

Inside the workings of TARGET2
The way TARGET2 works, in theory anyway, is as follows. A German manufacturer sells goods to an Italian business. The Italian business pays by bank transfer drawn on its Italian bank via the Italian central bank through the Target2 system, crediting the German manufacturer’s German bank through Germany’s central bank.

The balance was restored by trade deficits, in Italy, for example, being offset by capital inflows as residents elsewhere in the eurozone bought Italian bonds, other investments in Italy and the tourist trade collected net cash revenues.  As can be seen from the chart, before 2008 this was generally true. Part of the problem is down to the failure of private sector investment flows to recycle trade-related payments.

Then there is the question of “capital flight”, which is not capital flight as such. The problem is not that residents in Italy and Spain are opening bank accounts in Germany and transferring their deposits from domestic banks. It is that the national central banks which are heavily exposed to potentially bad loans in their domestic economy know that their losses, if materialised in a general banking crisis, will end up being shared throughout the central bank system, according to their capital keys if they are transferred into the TARGET2 settlement system.

If one national central bank runs a Target2 deficit with the other central banks, it is almost certainly because it has loaned money on a net basis to its commercial banks to cover payment transfers, instead of progressing them through the settlement system. Those loans appear as an asset on the national central bank’s balance sheet, which is offset by a liability to the ECB’s Eurosystem through Target2. But under the rules, if something goes wrong with the TARGET2 system, the costs are shared out by the ECB on the pre-set capital key formula.

It is therefore in the interest of a national central bank to run a greater deficit in relation to its capital key by supporting the insolvent banks in its jurisdiction. The capital key relates to the national central banks’ equity ownership in the ECB, which for Germany, for example, is 26.38% of the euro-area national banks’ capital keys.[ii] If TARGET2 collapsed, the Bundesbank, to the extent the bad debts in the Eurosystem are shared, would lose the trillion plus euros owed to it by the other national central banks, and instead have to pay up to €400bn of the net losses, based on current imbalances.

To understand how and why the problem arises, we must go back to the earlier European banking crisis following Lehman, which has informed national regulatory practices. If the national banking regulator deems loans to be non-performing, the losses would become a national problem. Alternatively, if the regulator deems them to be performing, they are eligible for the national central bank’s refinancing operations. A commercial bank can then use the questionable loans as collateral, borrowing from the national central bank, which spreads the loan risk with all the other national central banks in accordance with their capital keys. Insolvent loans are thereby removed from the PIGS’ national banking systems and dumped on the Eurosystem.

In Italy’s case, the very high level of non-performing loans peaked at 17.1% in September 2015 but by mid-2019 had been reduced to 6.9%. Given the incentives for the regulator to deflect the non-performing loan problem from the domestic economy into the Eurosystem, it would be a miracle if any of the reduction in NPLs is genuine. And with all the covid-19 lockdowns, Italian NPLs will be soaring again.

In the member states with negative TARGET2 balances such as Italy there have been trends to liquidity problems for legacy industries, rendering them insolvent. With the banking regulator incentivised to remove the problem from the domestic economy, loans to these insolvent companies have been continually rolled over and increased. The consequence is that new businesses have been starved of bank credit, because bank credit in the member nation’s banks is increasingly tied up supporting the government and businesses that should have gone to the wall long ago. The added pressure on failing Italian businesses from covid-19 is now being reflected in the Bank of Italy’s soaring TARGET2 deficit. The system could not be more calculated to cripple the Italian economy over the longer term.

Officially, there is no problem, because the ECB and all the national central bank TARGET2 positions net out to zero, and the mutual accounting between the national central banks keeps it that way. To its architects, a systemic failure of TARGET2 is inconceivable. But, because some national central banks end up using TARGET2 as a source of funding for their own balance sheets, which in turn fund their dodgy commercial banks using their non-performing loans as collateral, some national central banks have mounting potential liabilities, the making of national bank regulators.

The Eurosystem member with the greatest problem is Germany’s Bundesbank, now owed well over a trillion euros through TARGET2. The risk of losses is now accelerating rapidly as a consequence of the first round of Covid lockdowns, as can be seen in the chart of TARGET2 imbalances above. The second round of surging infections is leading to yet more economic destruction, yet to be reflected in TARGET2 balances, which will increase again. The Bundesbank should be very concerned.[iii]

Current imbalances in the system total over €1.5 trillion. According to the capital keys, in a systemic failure the Bundesbank’s assets of €1.115 trillion would be replaced by liabilities up to €400bn, the rest of the losses being spread around the other national banks. No one knows how it would work out because failure of the settlement system was never contemplated; but many if not all of the national central banks will have to be bailed out on a TARGET2 failure, presumably by the ECB as guarantor of the system. But with only €7.66bn of subscribed capital the ECB’s balance sheet is miniscule compared with the losses involved, and its shareholders will themselves be seeking a bailout to bailout the ECB. A TARGET2 failure would appear to require the ECB to effectively expand its QE programmes to recapitalise itself and the whole eurozone central banking system.

Now that really would be a crisis, the likes of which has never been seen before, where a central bank prints money purely to save itself and its regional agents.

The commercial banks are also in deep trouble

The deterioration in TARGET2 imbalances cannot be ignored by those with links to or outside of the Eurozone. While the UK is not in the euro or the TARGET2 settlement system, the Bank of England is a 14% shareholder in the ECB and could be on the hook for significant sums in the case of a Eurozone systemic crisis. Furthermore, with the City of London being the international financial centre for Europe, the UK banking system has considerable counterparty risks with Eurozone banks and other European banks.

Over 50% of the iShares STOXX Europe 600 Banks ETF is invested in Eurozone banks: 28% is invested in UK banks, 13% in Swedish banks, and the balance in Danish and Swiss banks. Its weighting in favour of the Eurozone and UK makes it a reasonable proxy for the market rating of the major banks based in the European time zone. Figure 2 shows the performance of this ETF compared with the S&P500 Index, taken as a proxy for the world’s stockmarkets.



Since the aftermath of the Lehman crisis in 2008, the S&P500 index was in a continual bull market until February this year. At the same time, the share prices of European banks as represented in the ETF were in a bear market. Ahead of the Fed’s reflationary move on 23 March, from mid-February both the S&P500 and the European banks ETF crashed, but the S&P then soared to new hights. After the briefest of recoveries, the ETF sank to new lows.

Given the strong performance of equity markets following the March lows, the abysmal performance of the banks’ shares is ominous. In fact, the contradiction is so great the message from the stock markets appears to be that the Fed and other central banks will ensure, so far as they can, that stimulus will reach businesses sufficiently for them to recover from the covid-19 hiatus irrespective of the banks survival. It is a contradictory message suggesting businesses may survive and prosper but banks might not.

Besides the enormous implied faith among investors being placed in the ability of central banks to keep the wealth creating stock market bubble on the boil, either banks are being overlooked or are in serious trouble. The latter appears to be the case. Being more undercapitalised than the major commercial banks in any other region, many Eurozone banks present serious systemic risks and should not be trading. Figure 1 shows the market leverages of European globally-important banks — the G-SIBs, including those of EU, UK and Switzerland.



Only two of them, the Swiss banks, have price to book ratios in excess of 50%. As well as these G-SIBs there are many other commercial banks in Europe with similarly horrifying price to book ratios and balance sheet to market capital leverage ratios. Blind to the implications of market capitalisations, regulators look no further than the relationship between total assets and balance sheet equity. But when markets place a price to book valuation of considerably less than 100% on any enterprise, they tell us the enterprise is not just insolvent, but in a winding-up, shareholders are unlikely to recover their funds. So, when we observe that Société Generale, the major French bank, has a price to book ratio of only 16.4%, without a major capital injection it is almost certainly bankrupt because its share price is little more than option money on its future survival.

The price to book values of all these G-SIBs have improved marginally in recent weeks, carried along by a dead-cat bounce. Even then, bank stocks remain close to their long-term lows when stock indices such as the S&P500 index have been forging new highs. This contradiction also suggests that investors have not been making rational decisions, and that with the exception of banks, stock markets are being driven by a combination of monetary expansion and the madness of crowds.

European businesses are now being bankrupted by a second covid-19 wave. The bankruptcies from the first have not yet fully worked into the financial system and will now be compounded by a second wave. Nothing can stop non-performing loans increasing and undermining overstretched commercial banks. The game of passing the parcel up into TARGET2 imbalances will continue until it crashes. Since few understand TARGET2 and those that do are frightened into silence, presumably it will be market assessments of individual banks  and their collapse into bankruptcy that will be the trigger for a widespread systemic crisis in the Eurozone. The whole Eurozone monetary system is deep into borrowed time.

The euro’s valuation

For the moment, the euro is riding high against the dollar, encouraging the ECB to explore deeper negative interest rates. But it is worth reminding ourselves of the currency dynamics behind the euro-dollar cross rate.

Until September 2019, large hedge funds were playing the fx swaps market. In effect, through their banks they were borrowing euros, selling them for dollars, and gaining the interest differential. This was one of the reasons for last September’s repo crisis in New York, when the leading banks ran out of balance sheet to finance both fx swaps and other derivative and credit activities. The repo crisis ended with the Fed cutting its funds rate from 2%, first to 1.5% then 1%, which took much of the steam out of the euro-dollar fx cross. With those positions now closed down the euro is more influenced by trade flows. And here, the EU runs a trade surplus of about €150bn with the US, which given that the US budget deficit has increased substantially, seems set to increase further unless Americans suddenly adopt a savings habit.

The capital position is favourable to the euro as well, when in June 2019, the last recorded total of US financial securities held by EU residents, totalled $9.631 trillion.[iv] And US residents’ ownership of Euro area securities totalled $2.952 trillion at end-2019[v] — a gap of $6.679 trillion. Therefore, in a banking crisis when foreign investments get sold down, there is likely to be substantial net buying of the euro against the dollar.

The euro has the potential to rise further against the dollar before and possibly during a systemic banking crisis. After such a crisis, all bets will be off. All we know is that the rottenness of the euro area monetary system will almost certainly lead to its destruction and most likely the end of the euro itself. The immediacy of the problem allows us to dismiss talk of resets and central bank digital currencies, which are being pushed by the monetary looters at the ECB who might sense there is a crisis to avoid. The talk of monetary stimulation with yet deeper negative interest rates is part of it, the hope being a new central bank digital currency will bypass a broken banking system.

But now the commercial banks are bust, we are about to see a monetary implosion that can only result in the euro’s destruction.


...

https://www.goldmoney.com/research/goldmoney-insights/popular/2473-the-destruction-of-the-euro

....


Interesting read in our latest installment of global economic doom and gloom. This analyst is predicting the euro's destruction and the end of the EU.

Years ago, there were major concerns about how greece's debt situation would impact the EU. Many worried the euro's value would plummet and exchanged their euro fiat for big screen TVs, electronics, anything of value that might retain value better than a defunct euro. Thankfully those fears turned out to be baseless and the euro stabilized. Greece's debt situation however, and many negative aspects of EU finance, trade and commerce remain unresolved.

The media is following a bizarre pattern. They only acknowledge negative effects pandemic lockdowns have on the USA. There is no discussion revolving around how lockdowns will impact europe or asia. We know that some EU nations carry higher debt to GDP ratios than the USA. And that many EU banks have less liquidity and capital on hand. It could mean that as badly as lockdowns have impacted america. They could be poised to hit the EU far worse.

Does anyone have thoughts or info on this?

[1715168173]

1715168173

[1715168173]

1715168173

[fillippone]

The Eurozone is bust.
<...>
Does anyone have thoughts or info on this?

I will read this more attentively, but I can assure you, and I told this in my earlier interview, that I bought bitcoin exactly for this reason: to hedge against a breakup of the Euro.

Europe is a complete failure. Having a monetary union without a common fiscal policy is an absurdity. No matter which strange reasoning behind this. I remember politicians telling us Europeans that having a monetary union would have helped having a fiscal union. Yeah, because building and house starting from the roof helps you having the walls.

And this COVID disaster showed, once again, how selfish and un-coordinated European countries are when instead a rapid, coherent and coordinated action is required.

I rapidly read the article, and I will come later, but I do agree: Europe is on the brink of a failure. Not today, not tomorrow, and I would like being compensated more to invest in something that will never pay me back (Italy debt at 1%? Are you kidding??).

[acquafredda]

“The first signs are that the euro currency has failed and it’s only in place because the ECB has dropped interest rates to zero. Under normal conditions it would’ve collapsed already. It can’t compete - it’s a dead end policy.
“The bottom line is basically free trade is great for all parties involved, it brings greater material prosperity of everyone involved. At the same time for having free trade you don’t need this Single Market and all the bureaucracy that comes with it.
“People in Great Britain have realised that this [the EU] isn’t a concept that will bring prosperity for the current and future generations, so they got out and I think others will follow. It will take some time but the EU in its current form will fall.”

https://www.express.co.uk/news/politics/844970/European-Union-German-economist-predicts-EU-euro-collapse-Brexit

Covid-19 pandemic crisis is also showing how inadequate the EU is to face common issues: everyone for himself.

[fiulpro]

Let's leave Europe and Asia , even leave the USA. If we did focus on the countries who needs more focus like :
Africa

We would be able to see the impact of the pandemic for real. Now countries like USA is asking help from small countries , this is actually a deplorable situation. I don't think the Euro have failed as a whole. But exchanging that for electronics is actually very wrong, this would not only cause problems for the people but it would also cause a decrease in the value eventually.

No exchange would be good. Other than exchange for precious metals or even cryptocurrencies ? Economy is weak for sure but I believe it's not just europe but everywhere else. Let's focus on the underdeveloped and developing countries more.

[Hydrogen]

I hope people realize. My motive for posting these doom and gloom OP articles.

Is to prevent unnecessary human suffering.

If the eurozone is broken, I would like people to acknowledge and fix it.

To prevent tragedies like the great depression and 2008 economic crisis from occurring again.

I hope that makes sense.

[Lucius]

If the eurozone is broken, I would like people to acknowledge and fix it.

If the Euro fails, what is left for us in the EU except to return to national currencies, because who can fix such a financial fiasco? The idea behind the Euro may have been a good one, but each country is as strong as its finances - and here we have the case that if one Eurozone country goes bankrupt, it will pull all the other members with it - Greece was a clear example of this, but other members managed to save it and preserve the stability of the Eurozone.

If we look at the whole situation from a broader perspective, it should not be overlooked that a strong EU is not in the interest of some great powers that have their own visions of the world. Admittedly or not, Brexit is a much bigger blow to the EU than its leaders will admit (fortunately the UK was not in the Eurozone), and it is only a question of when another country will move in that direction.

Maybe something that can be linked to this topic - and gives an insight into the current situation in the EU financial market -> EU reality and challenges.

[davinchi]

Germany already knew what they were getting into long before this position started to become worrisome, it is not something they like or enjoy and you can ask the whole German population about how they are owed this much from the other European nations (and a lot more owed from outside of euro zone as a whole) and they would all complain about it as well.

However what is interesting is that when you ask a Greek person about the money they owe, they complain about that as well that they have to pay that much debt, they would say it is governments fault that they are in that much debt but they do not want to pay the price of faulty and bad governments, same goes for places like Spain and Italy as well. So, there is a stalemate, no country can do anything about this and they just let it be and continue their life ignoring the underlying problem, that seems to be working so far so why stop now?

[palle11]

no country can do anything about this and they just let it be and continue their life ignoring the underlying problem, that seems to be working so far so why stop now?

They try to get UK into dropping there pounds curry. This the euro nations have tried to do with much effort but it has not happened all the while. I think that move can get the euro back on track but how possible that will be is the problem.

[sheenshane]

IMO, It seems like someone is manipulating the global economy, and this might be one of the examples.

It would really be impossible for the Euro to have a bear moment unless their main source of economical power is gone.  Tourism is one of the best industry Europe has been making for their living.  But then, this pandemic hit out of nowhere.  And it really is stupid because, in reality, covid is not that alarming and I never have seen anyone died with it.

It's like a made-up panic causing thing. Ending up, economy going down and that's a very brilliant idea.

[verita1]

Definitely. The numbers indicate the decline of the euro. In addition to the fact that in the European countries where the second wave of Covid19 governments feel concerned that it could affect the population more than the first.
There is no production, there are businesses that will be bankrupt. The economic situation in the Euro zone is worrying.

[hugeblack]

In my opinion, the effect of Covid-19 was good in the European Union. The terrible spread of the virus in some countries created a lot of rifts, as some countries decided to close borders and stop aid, which constitutes practices against the spirit of unity, but in the second wave, countries will have done a lot and are ready to confront the pandemic.


Continuing economic crises, increasing displacement of more refugees, and wars on the edges of Europe that pose a real threat to the first unity

[mixerbtc]

The European Central Bank is considering the release of a digital euro central bank-backed currency. I wonder how this will influence the euro market moving forward.

[Karartma1]

I hope people realize. My motive for posting these doom and gloom OP articles.

Is to prevent unnecessary human suffering.

If the eurozone is broken, I would like people to acknowledge and fix it.

To prevent tragedies like the great depression and 2008 economic crisis from occurring again.

I hope that makes sense.

The truth is out there in simple and plain sight. It's up to the individual to take some time to learn what might be the consequences of relying on a system that is slowly crashing down. You can show people the way but you can't force them to cross the line and make a meaningful first step. If you take Bitcoin as an example, satoshi was damn right: " If you don't believe me or don't get it, I don't have time to try to convince you, sorry."
What you say makes sense to those who understand.

[fillippone]

The European Central Bank is considering the release of a digital euro central bank-backed currency. I wonder how this will influence the euro market moving forward.

CBDC (Central Bank Digital Currencies) are one of the biggest threat to Euro Citizens.
Despite the catchy name, they have nothing in common with Bitcoin: they are "digital currency", for sure,  but instead of empowering the private citizen with financial sovereignty, as Bitcoin does, CBDC are enslaving the user under the  dystopian concept of a total control trough unavoidable financial monitoring.

Everyone of us should know this before embracing this concept.

[Mauser]

I hope people realize. My motive for posting these doom and gloom OP articles.

Is to prevent unnecessary human suffering.

If the eurozone is broken, I would like people to acknowledge and fix it.

To prevent tragedies like the great depression and 2008 economic crisis from occurring again.

I hope that makes sense.

Unforuntaely there is no real way of fixing it. The EU is flawed from the start, the systems don't work and most importantly the system can't correct itself, because you need a 100% of the votes to change any EU treaties. And that is never going to happen, the countries are too divided to actually work together in harmony. The target 2 balances will likely never be solved, it's just part of the European transfer union.

[Hydrogen]

Unforuntaely there is no real way of fixing it. The EU is flawed from the start, the systems don't work and most importantly the system can't correct itself, because you need a 100% of the votes to change any EU treaties. And that is never going to happen, the countries are too divided to actually work together in harmony. The target 2 balances will likely never be solved, it's just part of the European transfer union.

....


More effort could be made to reform debt in nations like greece which threaten to pull other EU members into bankruptcy with it. Greece could temporarily be removed from the EU until it is able to fix its own negative economic conditions. If the UK can unite enough for #brexit to succeed. Perhaps there is hope for real reform.

One of the biggest issues appears to be the media blackout accompanying problems with the EU. All europeans hear is negative news on america. They seem to not realize they face many of the same issues america struggles with. If not for the federal reserve bailing out european banks, the EU could have ended years ago.

It might be fair to say problems the EU and america face are identical to problems in venezuela. There are clear cut solutions for fixing everything. But somehow those options are never put on the table for consideration.

[jademaxxiss012]

I think most of the fiat currency are all been affected by the pandemic not only euro. If news that euro or other fiat currency will collapse then it is expected that other countries that are affected as well might follow and eventually collapse. The fiat currency will no longer had value and all will be exchanging assets or valuable for food. The demand for basic needs will arise and the scenario will be a disaster. Hopefully it will not going to happen.

[Salauddin1994]

The main reason for this is the ongoing crisis that is causing the euro to collapse as the country's economy has been hampered by the epidemic number of fiat currencies has dwindled as central banks have been hampered by inflation. The european central bank has said it will no longer provide emergency funding it seems that the greek economy is about to collapse if the country's economy improves if the government pays taxes properly the euro will be saved from destruction.

[beerlover]

This will probably be the destruction of the euro zone and not euro itself. Obviously euro is tied to euro zone so if every nation moves to their own currency once again like 20+ years ago, that would mean that they would have to get rid of euro as well unless they try to keep it alive while having their own currency as well which I am not sure how it would work.

What Germany and other not so bad nations economically can't handle is the fact that you are doing well and everyone works for you yet because some other nations are irresponsible or mismanage their economy, your own economy gets worse as well. Why would Germany not create their own currency, grow a lot bigger, be powerful and nobody else could stop them? They could totally do that and let Greece, Spain and Italy bankrupt themselves without worrying about consequences.

[sunshinelegit]

Euro will be ok. One of the indicators of it - stablecoins, related to the euro, become more and more popular. As an example - eurg token.
Defi hype will and stablecoins will be more useful