> The members of the Eurozone taken together have the same sovereignty over monetary policy as any other country. But that's beside the point. You are right of

> The members of the Eurozone taken together have the same sovereignty over monetary policy as any other country. But that's beside the point. You are right of course, but they can't get their shit together. > The point is that a sovereign country with a central bank can print its own money, but that doesn't mean it can borrow in its own currency. This is getting into a bit wonky details, but the bottom line is that your concerns are misplaced. First of all, a monetarily sovereign government doesn't have to borrow in the first place. The only reason that they "borrow" is to provide a safe interest earning asset for the financial sector to play with, and so that the central bank can effectively raise the interest rate without paying interest itself - and wouldn't that cause interesting questions by the public, if suddenly raising interest rates would cost the central bank money! Second, at the end of the day when the government runs a deficit, banks have a choice between keeping surplus reserves at the central bank or buying government bonds. As long as the interest rate paid on government bonds is higher than that on reserves, banks will buy government bonds. So there are no monetary constraints. What you should be concerned about, if anything at all, is the exchange rate to other currencies. Clearly, most normal countries see their exchange rate fall if they run a current account deficit for too long (the US is an interesting but explainable exception to that rule). This makes imports more expensive. On the other hand, it makes your exports cheaper for foreigners, which is a boost for domestic industry. So in the end, the economy actually benefits.