The Greek path to ruin was determined by eurozone membership, similarly to other peripheral countries – Portugal, Ireland and Spain. The periphery adopted the euro hoping that it would lead to convergence with the more developed core. But the monetary union has structural flaws. Within its rigid framework, and faced with frozen German wages, peripheral countries lost competitiveness. Huge external deficits resulted, which were financed by borrowing from the banks of the core. Peripheral banks also took advantage of easy credit to expand domestic lending. By 2009 the peripheral economies were laden with vast debts – domestic and foreign, private and public – making them effectively insolvent. Core countries, reasonably enough, were reluctant to carry the costs of peripheral insolvency. This is the root cause of the eurozone crisis, and Greece is simply the most acute case of peripheral failure.