Belgium, government and the euro

Belgium is having some trouble getting a government, nothing necessarily unusual about that but this time seems particularly bad. Almost three months after an election it is still without a government and negotiations have basically hit a brick wall. In addition to the usual tensions and disagreements between the linguistic groups, some are arguing that Belgium’s decision to join the euro is contributing to the failure. The argument is that in the past such a political crisis would have created a monetary crisis, this risk or event focused minds to ensure a government was created but now no such risk exists.


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