The euro is a macro-economic weapon of mass destruction – it simply must be defused.
‘There’s no such thing as an orderly break-up”, argued my friend, a perceptive and highly-educated man, as we discussed the eurozone over dinner. His argument was that a down-sizing of the single currency should be resisted at all costs.
By Liam Halligan
19 Nov 2011
“The prospect of one or more countries leaving, or being forcefully ejected, is now very real, whether you like it or not,” I replied.
“So we should face reality, take the decision, prepare for it now, and do what we can to manage the transition, rather than enduring the horrendous consequences of a market-imposed outcome”.
This is the conversation, the tortured debate, now taking place among policymakers, financial analysts and, increasingly, the general public, across Western Europe.
Nowhere is this ghastly dilemma – tough-it out, or move to a smaller, more stable eurozone – more keenly felt than in Germany.
While Chancellor Angela Merkel instinctively supports the “European project”, she also needs to placate an increasingly restive electorate.