Dissolution of Eurozone Will Benefit Europe’s National Economies, Say Experts
One of the world’s foremost macroeconomic research bureaus has confirmed what the British National Party has said all along, namely that national European economies are best left alone and out of the EU’s punishing grasp.
According to Capital Economics, which provides consultancy work to financial institutions in America, Europe, Asia, Latin America and the UK, a break-up of the eurozone would be positive for growth “and not the disaster that many think.”
In a new report, Capital Economics said that a breakup of the eurozone would “be beneficial for both weaker and stronger members because it would bring about the necessary rebalancing of the region's economy.”
According to the report, states such as Portugal, Italy, Ireland, Greece and Spain “have been hit by higher cost and price rises than countries like Germany, undermining their ability to compete.”
A second problem was that although Germany runs a “vast” trade surplus it has refused to increase domestic demand to help boost growth among the weaker, indebted economies.
"As long as the eurozone continues to operate by these rules, there is no alternative to many years of economic pain," the report said.
"For the sake of the future economic health and success of the European Union, the eurozone needs to break up."
Capital Economics said that if the weaker nations left the euro, their currencies would depreciate, wiping out much of their lack of competitiveness and enabling growth of exports.
“Germany would also reap the benefits of restoring its own currency, which would strengthen, cutting the trade surplus.
"The huge external surplus, from which German consumers derive no benefit, would be translated across into increased public and consumer spending. The standard of living of German households would rise substantially," the report said.
This simple logic is obvious to all objective observers, but the Labour, Liberal and Conservative parties remain in denial and are all committed to ever closer cooperation with the EU.
The Liberal Democrats, who are now part of the British government, have gone one step further and have even demanded that Britain adopt the euro as its currency.
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