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The only other option is breakup

Friday, 31 July, 2015

Germany is running the show and writing the rules says Philippe Legrain. Why, then, he wonders, is France proposing even deeper integration? “The Last Thing the Eurozone Needs Is an Ever Closer Union” argues Legrain in Foreign Policy. Snippet:

“The conceit in Paris is that a eurozone government would be shaped by France. But why would it be? Berlin rules the roost in the eurozone, so it is scarcely going to subordinate itself to a Franco-European institution in Brussels. When German officials talk about fiscal union, what they have in mind is not the Keynesian eurozone treasury that France would like, but a supranational fiscal enforcer that could rewrite national budgets at will. That would entail an extension of German power, not a reclaiming of French influence.”

Legrain’s conclusion is worth pondering: “A flexible eurozone would be good economics and sound politics. Trying to impose a single, rigid, and deeply flawed Germanic model on the eurozone is not. A French-style eurozone government is a pipe dream. The only other option, of course, is breakup.”


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