So, there have been scare reports in the Economist that the Euro might crash in a few weeks if a grand action plan ( unlimited liquidity for longer durations by the ECB), or if all euro-zone debt above 60% of each country's GDP is mutualised, setting aside a tranche of tax revenue to pay it off over the next 25 years (Germany's Council of Economic Experts' plan).
Is it worth it to save the Euro if even Spain and Italy are drowning in this muddy quagmire? And even if the deal works out, it most probably entails political pressure to change from Germany, which could infuriate people.
Is it worth it to save the Euro if even Spain and Italy are drowning in this muddy quagmire? And even if the deal works out, it most probably entails political pressure to change from Germany, which could infuriate people.
The Euro was a flawed concept from the very beginning. A reaction to the French fear of German economic dominance following reunification. I for one will welcome the disappearance of the Euro, rather than exist in an institution designed to reflect merely Franco-German interests. Not to mention the loss of sovereignty and democracy associated with the new treaty, essentially banning expansionary fiscal policy. After all, if your own government can't decide its own economic policy, what are you voting for?
