An Orderly Collapse Is The Best We Can Hope For
Expect a reasonably orderly collapse of the euro as we know it, and the start of another currency, but only for some countries
The euro is dead. Long live the new euro. Angela Merkel and Nicolas Sarkozy have spoken rather cryptically but their meaning is clear. If the euro was a movie its title would be The Dawn of the Walking Dead. It is the zombie of currencies waiting for its head to be lopped off so it cannot stagger around from one crisis in Greece to another in Italy and terrorising France and Germany. The truth is it never had a chance, it never had the right genes nor did it have the resistance to fight the contagion to which it has succumbed.
Don’t take my word for it; see what is happening: the softening up of the European public for what is about to befall the euro in their pockets, namely the currency’s orderly collapse and the creation of a new euro, for want of a better working title....
The game will be given away once the British Cabinet is briefed and Business Secretary Vince Cable puts his foot in it (again) by offering up an indiscretion about the pretence of it all – or it is leaked that he is in disagreement with his colleagues and might yet resign (again)....
The new intake of Tory MPs is much more sceptical towards EU institutions and it is no longer predominantly about the cost of membership. In a world of more globalised trade, fewer Tory MPs view an ailing Europe as the panacea to economic success; with Merkel’s planned tax blitz on the City of London emotions are rising and with Tony Blair having signed away Major’s Maastricht employment law concessions and much of Thatcher’s Fontainebleau rebate the EU looks more like a hindrance than a help when it comes to the UK escaping from the eurozone whirlpool.
If Europe is to become two-speed – one under the strait jacket of a German-dominated new euro currency and the other the mostly southern European and former communist states with their own currencies, MPs are beginning to think the unthinkable and ask would we be better off out of it altogether.
Nato? Yes. European Economic Area? Yes. Two-speed Europe? Hmm. When Jacques Delors helped design the euro it was meant to bring Europeans closer together – now its inevitable collapse looks like pushing them apart. The Anglo Saxons were right, and he should have listened.