There were plenty of warnings. It was clear that the euro was inherently flawed. And we also knew how the problems would manifest themselves too.
Now that the European economy is in the “eternal recession machine” of the euro, we can’t help wondering why it was dragged into existence at all.
Now the final justification – that a shared currency would somehow prevent conflict in Europe – is looking mighty shaky too. The euro has become a cause of economic divergence, political battles and hatred of the EU.
This blew up worst of all in Greece. When the Greek prime minister visited the European Parliament, he was told what all of Europe should’ve known 17 years earlier:
Nigel Farage explained it best:
If you try and force together different people or different economies without first seeking the consent of those people, it is unlikely to work and the plan has failed. This is not just Greece we are talking about today, the whole of the Mediterranean now finds itself in the wrong currency.
Marine Le Pen added that, “The euro and austerity are Siamese twins. Your people will not escape from austerity without leaving the euro.”
But the Europeans continued on their not so merry way: Jean-Claude Juncker, president of the European Commission, said: “In the light of the Greek crisis the answer cannot be to turn away from the need to take the economic and monetary union further.”
The problems Nigel identified are gradually getting worse. Le Pen’s Siamese twin will be back. And, I believe, so will the European sovereign debt crisis.
In today’s Fortune & Freedom, John Butler and I discuss John’s experience working in the German banking system while the euro was being born. Back when the euro’s problems were foreseen, but deliberately ignored.
Nothing that happened in the subsequent two decades should’ve been a surprise to anyone. And that chaos will only continue for as long as the euro does
Editor, Fortune & Freedom