An article by Wolfgang Munchau in the Financial Times, titled “Eurozone Stagnation is a Greater Threat than Debt” says: “It would be wrong to think last week’s global market gyrations signal a return of the eurozone debt crisis. Sovereign bond spreads in the eurozone did not move by much, except in Greece. What happened last week is something rather different.”

The article reports that capital share markets realized that there is the possibility of an accross-the-board recession through the eurozone with inflation low for the next 10 to 20 years. The article states that this scenario is concerning with consequences such as high unemployment, a growth in poverty, a wage freeze and less public investment.The article gives a shocking example of this by pointing to the German armed forces where only 150 of the 254 jets of Luftwaffe are flightworthy.

According to the article, Eurozone officials have three choices. They could turn the Eurozone into a political union and issue a eurobond, a joint transport mechanism and united banking; they could accept the situation for what it is; or they could agree to a division of the eurozone as a final choice.