How to rebuild the eurozone - by Theo Leggett
When the European Commission recently opened its doors to the public, it put on quite a show. Bands were playing, there was cold beer on tap, and circus clowns performed for the kids.This was the EU as the smiling officials would like it to be - one big, happy family, a multinational meeting of minds. But the reality is rather more complex.
Paul de Grauwe, professor of economics at the University of Leuven in Belgium and an adviser to Mr Barroso, fears that a lack of political integration is undermining the single currency project.His theory is simple: if member states continue to put their own interests before those of the EU in key policy areas, the economy of the region as a whole will suffer. That could create tensions between the members of the eurozone, and eventually the system will break down. The answer, he says, is a much more radical type of union.
Another view comes from John Purvis, a British conservative MEP and vice chairman of the European Parliament's committee on economic and monetary affairs. He thinks what is needed is stability - not radical reform. "The central bank has to be very strict about its criteria for operation," he explains. "Its just like we had in Victorian times with the gold standard. You have a stable currency that you know where its going to be next week, next month, next year and five years down the track.
No comments:
Post a Comment