The Euro is a current factor of the crisis as that is what makes (for example) Greece's problem into Germany's problem.
Germany has an interest rate of 2%, Greece 18%.
Germany has debt of 83% of GDP, Greece has 180%.
If Greece still had the drachma, then they could devalue it and work out their own problems. However, they don't. It is now the problem of every Eurozone country as their economies are linked to Greece through the Euro.
And, given the nature of Europe, if the Eurozone has severe problems then so does everyone else.
That's why it's a European crisis and not a Greece/Portugal/etc spending problem - because of the Euro.
Crisis in south Europe is due to public overspending (Where do you live? Do you understand how the money is spent down there?)
Anyway, of course if you produce more money, you still have a spending problem. Only way to solve this in the long term is either increasing taxes or lowering the expenses. You choose.
Producing more money doesn't fix bad spending policies but it reduces debt -- both private and public -- at the expense of the lenders. It's also a way to alter the capital/work incomes ratio.
There is, rightly, a German trauma towards devaluation -- and that's why they agreed to be part of the Eurozone as long as the Euro was managed like the Mark.
That kind of debt decrease is just another tax. A sublte one, but a tax. And if you do that, then nobody will want to borrow you money at normal interest rates. Again, Italy 80s, we did it and it did not work.
Germany has an interest rate of 2%, Greece 18%. Germany has debt of 83% of GDP, Greece has 180%.
If Greece still had the drachma, then they could devalue it and work out their own problems. However, they don't. It is now the problem of every Eurozone country as their economies are linked to Greece through the Euro.
And, given the nature of Europe, if the Eurozone has severe problems then so does everyone else.
That's why it's a European crisis and not a Greece/Portugal/etc spending problem - because of the Euro.