The Euro is Doomed to Fail




euro

The Euro is doomed to fail. The Euro has, for some time now, been shown to be a failure. The Euro crisis is a direct effect of shared currency and shared credit ratings, allowing countries like Greece to borrow until they could borrow no more because of the misconception that if Greece defaulted then Germany would pick up the bill. One look at Greece today will show that, far from the Euro aiding the Greek economy, it’s destroyed their economy. The level of youth unemployment in Greece in near 50%, the level of debt is above 175% of GDP.

The worst thing about the Euro is that the people who created it knew it was going to be a failure before it was even implemented. It might be nice that you don’t have to change currencies when you go on holiday but it’s not nice to have your currency devalued, which leads to economic collapse. A strong currency will hurt nations that manufacture a lot because it will make their goods appear more expensive. A weak currency will hurt nations that wish to import large amounts of goods. Jamming a mixture of both those two extremes into a union of 19 nations is clearly doomed to fail.

Not to mention, the inability to change individual interest rates is also beyond stupid; a high interest rate will benefit those suffering from high inflation and a low-interest rate will help those suffering from deflation or economic downturn.

In conclusion, the founders knew there was no way that these countries could co-exist together under the Euro and the evidence along the Mediterranean shows this. The Euro is simply a way of trying to forge a federal European super-state. It’s doomed to fail and it should concede now before it collapses and takes the hopes and dreams of millions of Europeans with it.

Sebastian Cheek is New Media Central’s Europe Editor. Make sure you follow him on Twitter.