Hopes that the creation of the euro would force rational economic behaviour on all sides were in vain
Oskar Lafontaine, the German finance minister at the launch of the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.
Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster". "The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt," he said.
By Carlos X. Alexandre:cAn article that I never finished was titled "Germany Needs To Save The Euro, Desperately." I still think that Germany truly does not have options, and despite the hardships that will fester for a long time, saving the euro is potentially the only workable solution. But now, as reported by Reuters, "Exclusive: French, Germans explore idea of core euro zone."
BERLIN (Reuters) - Germany urged its European partners on Wednesday to agree to cede control over their budgets to a central authority in Brussels, setting up a clash with France and other single currency members at a summit of the bloc's leaders this week. At a briefing in Berlin before the Thursday-Friday summit, a senior aide to German Chancellor Angela Merkel also rebuffed pressure for quick moves to create a pan-European bank supervisor. ...
This article is a guest contribution by Dr Stefan de Vylder*, well-known Swedish economist.The 85 billion euros that were recently mobilised by the IMF, the European Union and various bilateral lenders to save Ireland – or, rather, to save banks and other private investors who have invested in Irish assets – confirms my view of the European Monetary Union (EMU) as a club with the wrong membership and a weak management.