Euro-zone Will Have to Accept Reality of Economic Incompatibility
The planners of the Euro-zone will have to eventually accept and “capitulate” to the reality that a common currency throughout the EU is impossible to implement, Andrew Brons MEP has said.
Speaking after a debate in the European Parliament today on the resumption of a planned European Council meeting, Mr Brons said that in the end, “the whole zone must capitulate to the reality that a common external currency value and a common interest rate cannot suit the very different seventeen economies of the Euro-zone, still less the 27 economies of the EU.
“There is a view that decisions about the Euro-zone have nothing to do with the United Kingdom and still less to do with a British opponent of EU membership,” Mr Brons said.
“However, I am not indifferent to the fate of fellow members of an organisation, of which I do not want Britain to be part.
“Attempts to paper over the cracks in the Euro-zone will surely fail. The value of the Euro is much too high for the Southern and North Western Five.
“What is more, it is too low for some Northern members of the zone,” he said.
“My ideal solution would be the dissolution of the whole Euro-zone. That would safeguard the future of sterling. However, a division between the two groups, with a re-valued Northern Euro and a devalued Southern Euro, would be a step in the right direction.”
Meanwhile, Eurozone leaders have cancelled a meeting of the region’s finance ministers scheduled for tomorrow amid rising tensions as no solution for the sovereign debt crisis has been found.
According to reports, markets across the Continent interpreted the news as meaning that the Eurozone leaders were less likely to reach agreement on the crisis.
Instead, EU leaders will meet tomorrow to “finalise details of a plan to tackle the debt crisis, including proposals for steeper losses for owners of Greek bonds, and a recapitalisation of European banks.”
The latter means that European taxpayers will once again be called upon to bail out the banking system.