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The European sovereign debt crisis, which emerged in 2009, revealed unsustainable fiscal policies among several countries in the Eurozone periphery (Matthews, 2011). In fact, high debt ratios are a potential problem for a majority of the countries in the euro area, reaching an average ratio of 92.8 percent in 2015 (Eurostat, 2015). Theoretically, common pool problems and moral hazard within a mone
