According to Mr. Navarro, much of the debt crisis is created by the ECB. When countries controlled their currency, they managed their debt, printed money and maintained low interest on their debt.
But now countries have lost this type of control and they are prohibited from borrowing from the ECB, and while private banks can borrow from the ECB, with the low rate of 1.25%, countries must borrow from private banks at interest rates hitting 7%.
That is the crux of the matter. However the euro politicians decide to ignore that and apply ‘rules’ that nobody, including Germany stuck to. They now intend to have some more unenforceable rules to prevent a future crisis while ignoring the current crisis completely.