by Pedro Schwartz
September 17, 2013
The great hopes that surrounded the euro at its birth have failed to come true. It is now reeling under the blows of a prolonged financial crisis and creating discord among the members of the European Union. Clearly, the design of the new money was defective. I will suggest that even if euro-members had kept by the rules of the game the euro could not have worked as intended. The urgency to find remedies for the present prolonged economic recession is tipping the choice toward more discretion and less independence, since the temptation to apply short-term monetary painkillers is strong even for those who would prefer a sound money constitution for Europe. Which of the two paths will the Eurozone take? The choice may turn out to be futile, given the impossibility of financing the welfare state in all European nations.