‘Flawed at Birth and Destined to COLLAPSE… Eurozone Must DITCH Single Currency to Survive’
- ‘Flawed at Birth and Destined to COLLAPSE… Eurozone Must DITCH Single Currency to Survive’
by LANA CLEMENTS, http://www.express.co.uk/
THE eurozone was flawed at birth and is destined to collapse unless huge changes are made to its single currency, according to a Nobel-Prize winning economist.
Joseph Stiglitz said the decision to adopt the euro in 1992 without the institutions which would make it work was “fatal”. He said leaders dreamed up the idea without a proper understanding of what a monetary union meant. In an explosive new book, How To Save The Euro, the economist provides a scathing review of the bloc’s current set-up. Europe was not designed to deal with the differing economies of members, while its bureaucracy holds back growth, employment and stability, according to Stiglitz.
He said the rules, regulations and institutions are to blame for the multiple crises emerging from Europe since its inception. Large parts of the bloc face a ‘lost decade’ where capita is lower now than it was before the crisis, blasted Stiglitz. He added even Europe’s so-called successes are actually colossal failures.
For example, Spain’s unemployment rate has fallen from 26 per cent in 2013, to 20 percent at the beginning of 2016 – but nearly one out of every two people are unemployed. In an excerpt from the book published by Vanity Fair, Stiglitz writes: “The mark of a well-functioning economy is rapid growth, the benefits of which are shared widely, with low unemployment. “What has occurred in Europe is the opposite.” He added: “Germany and others have sought to blame the victims – countries that suffered as a result of the flawed policies and the flawed structure of the eurozone.”
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