With the tumultuous events in Europe this week, Italy may be about to add to the troubles that are ripping the EU apart:
EUROPE'S political crisis spread to the euro yesterday after Italy publicly discussed abandoning the single currency and reverting to the lira.
The Italian suggestion, once unthinkable to the European establishment, comes as a poll showed a majority of Germans want to pull out of the euro and revive the Deutschmark.
The threats to the future of the euro have disturbed currency markets already nervous about the growing crisis over the European Constitution.
In his remarks yesterday, Roberto Maroni, the Italian welfare minister, said it was no longer unthinkable that the country would abandon the euro and revert to the lire.
The single currency "has proved inadequate in the face of the economic slowdown, the loss of competitiveness and the job crisis", he said.
The EU was pushed as a unified effort to rival the US. As I've written in the past, the old rivalries and cultural differences throughout Europe will be the the death of this idea.
Saturday, June 04, 2005
A Slow Death for the EU
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1 comment:
While a single currency for all of Europe is good idea, without a single government being in control of fiscal policy there are not the necessary tools to smooth out the economic cycles.
This is a case of half measures being worse than either of the alternatives.
Sadly, this is probably the least of Europe's economic problems however, although it makes a great scape-goat for individual governments.
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