To prevent a break-up of the euro zone, the ECB has implemented federalism that is rejected by governments

There is a clear risk of a break-up of the euro zone, due to the growing heterogeneity of income levels and the presence of highly indebted countries (public and external debt), which could trigger another public-debt and balance-of-payments crisis. Federalism is the natural solution to prevent a break-up of the euro zone: a large federal budget would institute transfers from the rich countries to the poor countries, from the solid countries to the fragile countries. But governments have not succeeded in putting in place this required element of federalism. Here the ECB has intervened. The very low interest rates have given rise to the necessary federalism, in the form of income transfers from lending countries (in particular Germany) to borrowing countries (the peripheral euro-zone countries ).