Thursday, 7 June 2012

Should We Be Lecturing Euro Countries?

All the suggested solutions to the euro crisis have long lead times and are therefore useless to deal with the immediate crisis. I can think of only two solutions to the immediate crisis, either wind up the euro or split it in two with Germany and like run countries in one part and France and the Greco-Latin countries in the other. Admittedly it will be messy and no doubt there would have to be Treaties to undo the Treaty which set up the Euro and approval referendum in some countries. However to keep on pushing the euro crisis can down the road is only going to end in an even bigger mess which is likely to engulf us all. It was fascinating to hear Professor Kerber of Berlin on Jeff Randall Live this evening saying something similar. Professor Kerber also thought that for Britain to give advice to Germany about what should be done to resolve the crisis was impertinent as we are not in the eurozone. I disagree with him since as a member of the EU we are effected by what is going on and therefore have a genuine interest in the outcome. I don't agree with the line the British Government is pushing though as closer union on banking, fiscal and political matters is not in our interest.  Iain Martin of the Telegraph may well be correct in his assessment that the line being taken by the Government is for diplomatic reasons only and you can read his argument here. Allister Heath of City A.M. has a different take on the crisis which you can read here but one of his solutions involves the break up of the eurozone although he does not mention the need for a new Treaty in order to do so.

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