Inflation falling is causing many problems in the Euro Zone. Due to the falling inflation rate many people are holding on to their money as opposed to investing. They are doing this because they want to be able to buy goods at lower prices. they are also waiting for their money to be worth more so that they get more money "for free." The European Central bank is trying to hold off these problems with various tools but they are failing to make a true difference.
This is why the Euro Zone is a major failure. It is a nice idea to have the various countries attempt to create one economic zone that is more powerful like the U.S. However it does not work when there is no central power that can force the other countries to do what they need to do. Because of that one countries failings bring down the others and hurt countries that have been fiscally responsible.
http://news.yahoo.com/falling-inflation-another-headache-ecb-142804299--finance.html
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