Help for Poorer Neighbors Designing a Transfer Union to Save the Euro

Many economists argue that the euro zone needs to become a transfer union, where payments flow from richer to poorer states, if the single currency is going to survive. But a look at existing systems in different countries shows that the design of such a union is crucial -- otherwise some countries will become permanently dependent on handouts.
The Portuguese Finance Ministry in Lisbon. Experts say that the euro zone will have to become a transfer union if it is to survive.

The Portuguese Finance Ministry in Lisbon. Experts say that the euro zone will have to become a transfer union if it is to survive.

JOSE MANUEL RIBEIRO/ REUTERS
Translated from the German by Christopher Sultan