nick venedi

Friday, 18 May 2012

Slaves to the Euro

I am the first admit that I have been a vivid supporter of European union for political reasons. I believed that integration would reduce the risk of conflict and wars that destroyed the continent the last century.

But I also knew that monetary union without fiscal convergence would take Europe to the point of no return. Nations like Greece, Portugal and Spain can not possibly operate on the same level with Germany or France. The current crisis means that the dream of political union can't happen as the economic reality won't allow this.

I have no idea whether the  Euro will survive but if Greece with a 2% staken of the entire Euro zone area can create the current drama it must mean that the system is not capable of withstanding more pressure and the fall of Spain will bring the end of this adventure. You can't expect the Greeks and the Spanish to throw away a generation of young people and condemn them to the oblivion of permanent unemployment so that a currency can be saved and interest rates paid to fat bankers! It ain't going to happen!

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