Thursday, April 14, 2011

Questions to which the answer is No

Economic & Monetary Affairs >Commissioner Olli Rehn is in the States this week, and at the Brookings Institute he gave a talk today entitled,
Is the Euro Saved for Good?
He concludes his fantasy thusly

But let me be clear, the euro is not on the list of problems. Instead, it is an essential part of the solution. It contributes to growth by enhancing cross-border economic activity and competition, and is essential for macro-economic stability.
Lastly, let me recall that the euro is not just a technical monetary arrangement, but rather the core political project of the European Union. As such, it is a symbol of our political will and determination to work together for our common good.
That is a further reason why it is worth taking Europe seriously when we say that we are ready to do whatever it takes to defend the euro and financial stability in Europe.
Let us remember this, remember that the Euro is not at heart an economic project but a political one. As such it is, and will remain at odds with economic reality, and will always be vulnerable to asymmetric shocks.

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