The Euro’s real problem is not debt, but a failure to realize economc growth

This week, German Chancellor Merkel and French President Sarkozy again met to move forward on a new set of rules and penalties by March 1. Their meeting comes as economic data shows Germany’s economy slowed at the end of 2011 and Italy is in an even more precarious position than previously thought.

While many are urging the leaders to push forward quickly, some believe the solutions being offered do not address the real issue. One of those dissenters is Fortune editor Shawn Tully, who argues that “Europe’s principal problem isn’t the size of its members’ debt and deficits.”

“The real rub is growth: The weak eurozone nations can barely grow as long as they remain in harnessed to the euro,” writes Tully.

“Why can’t Europe’s weaklings grow? The reason is basic: Their economies are uncompetitive on world markets so long as they’re stuck with an extremely over-valued currency that they and their powerful northern neighbors seem determined to preserve,” he adds.

Read the entire Fortune magazine article.

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