A burned EU flag in Syntagma square in Athens, May 1, 2013.
Yannis Behrakis / Reuters

The Greek debt crisis has shaken the euro just in time for its 10th birthday. This latest challenge should have come as no surprise; it would have been a miracle had the currency been immune to such problems. If anything, the past few years have shown that although the euro is a remarkable construct, it is incomplete: the eurozone is financially unified but not yet politically unified enough. This deficiency underlies the euro’s current problems and makes them more difficult to address.

Monetary unity entails a much greater degree of political unity than many European commentators, politicians, academics, and publics assumed it would. In a monetary union, political decisions taken in one country affect the economies of other countries in very direct and sometimes dramatic ways. This means that many national problems can only be dealt with jointly, across the whole currency area. The Greek economy accounts for only

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