nick venedi

Thursday 29 April 2010

Greece and the Euro


Is Federal Europe going to work?

It was in 1981 that the French President Ciscard insisted that Greece should join the EEC and he was right. France has been a loyal and traditional ally to Greece so Hellas became the 10th member of the EEC and was doing well until the decision to join the Euro in 2003 which was, in my opinion, the wrong time. Given that the country is now trapped within the Euro zone mechanism it means that the country cannot devalue its currency to see the storm so what the left was saying (and for once they were right) back in 2002 was right, the Greek economy was not ready for the Euro. But we are there and we are facing a major crisis. There are many who will say that the crisis proves that all the Euro philes were wrong but I take an entirely different view. European Federalism will only work if the USA model is followed and all member states in Europe agree that foreign policy and finances should be handled centrally. I know this is controversial but right now we are in the middle of a major mess which promises to bring down Greece, Spain, Portugal, Ireland and Italy and that is just the start! Either we get a real Federal system or we abandon the whole project.

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