Is a key problem in the euro zone (the disappearance of capital mobility between countries) being corrected?

A very severe problem appeared in the euro zone in the aftermath of the subprime crisis: capital mobility between euro-zone countries came to a halt. Peripheral countries could no longer borrow excess savings from core countries (mainly Germany and the Netherlands). We seek to identify the causes (excess external debt in the peripheral countries, misuse of this debt) and the consequences (decline in investment in the peripheral countries, loss of growth in the euro zone, a share of its savings being lent to the rest of the world) of this situation of lack of capital mobility between euro-zone countries. It has had a dramatic effect: even though some adjustment mechanisms (TARGET2, purchases by the ECB) have been implemented, the euro zone’s monetary unification has lost its main benefit, which is to enable optimal use of savings within the euro zone. Restoring capital flows between euro-zone countries requires restoring confidence in governments and in banks’ situation, or creating new financial instruments (European Union debt, more generally eurobonds). For the time being, we cannot see any sign of improvement in capital mobility within the euro zone .