the accumulation of massive and unsustainable deficits
public debt levels in a number of peripheral economies
threatened the eurozone's viability by the end of its first decade
the lack of political integration needed
wealthiest members called on weaker states to embrace strict austerity{ harshness, strictness, asceticism, rigor}
popular unrest and toppling governments in Greece and Italy
economic integration was integral to European peace and prosperity
joint control over food production
Bulgaria, the Czech Republic, Latvia, Lithuania, Hungary, Poland, and Romania were potential eurozone candidates.
cutting public spending and raising taxes
The periphery states thrived in the first years of the euro
the "productive capacity" of the periphery was limited by rigid labor markets and a reduction of economic competitiveness.
the EU and the IMF bailed out Greece, Ireland, and Portugal
fears of sovereign debt contagion to the eurozone core intensified
Greece had manipulated its balance sheets prior to the global financial crisis in order to hide its debt.
Markets lost confidence in Prime Minister Silvio Berlusconi's ability to implement long-promised austerity measures
a temporary technocratic government of national unity
spending cuts and lifting the retirement age.
the EU has begun to adopt measures for centralizing governance mechanisms and coordinating fiscal and economic policy.
the European Stability Mechanism, the European Systemic Risk Board
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