It will have to go, he said

Tuesday, 22 May, 2012

In the Financial Times today, columnist Gideon Rachman goes there. It is “Time for a eurozone divorce” he declares: “So — to answer the question that I dodged back in December — yes, I do think that it would ultimately be better if the eurozone broke up. This might not involve a complete reversion to national currencies. A hard core of euro-users, centred on Germany, might survive. But the current euro will have to go.”

Rachman concludes: “It is true that even a ‘velvet divorce’ for the eurozone would involve enormous dangers. But at least it would offer a believable exit from the present maze. As a (very) German proverb puts it — ‘Better an end with horror, than a horror without end.'”

The euro was a stunningly bad idea. Now, there are no good options left. As Gideon Rachman points out in his piece, the idea that the euro could be saved by sacrificing national rule on the altar of the common currency would hollow out European democracy and invite a terrifying nationalist backlash. Let’s have a civilized divorce before we have civil strife.

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