The Conflict Relation Between the Sovereign Debt of the Euro Area Countries and the Common Monetary Policy As a Potential Source For Geopolitical Changes

The spreading of the uncertainty shock in the euro area caused changes in both domestic and external macroeconomic conditions, generating a set of constraints on macroeconomic policies. The purpose of this paper is to identify some constraints of relation between the common monetary policy and the sovereign debts crisis of the euro area countries. The identification of such constraints is helpful to the extent that it would signal potential conflicts between countries, assuming that the political dissensions are factors which could enhance the monetary disintegration and the geopolitical structure change. The euro area crisis impairs the geopolitical power of influence of Europe and compromises the negotiating position of the European Union on the world stage.