‘The Euro May ALREADY Be Lost’: Economists Predict DOOMSDAY for European Union’s Currency
- ‘The Euro May ALREADY Be Lost’: Economists Predict DOOMSDAY for European Union’s Currency
by ZOIE O’BRIEN, http://www.express.co.uk/
REPEATED failings in the eurozone may have already signed the death warrant of the single currency despite Europe’s continued attempts to centralise the euro, an economic think tank has warned.
European Union nations are plummeting further into debt, amid angry protests and calls for reform, but the Union continues to push for the joint monetary union. Now, economists have suggested it is already too late to save the failing monetary union – which will “almost surely fail”.
Tuomas Malinen, CEO of GnS Economics, said: “Living standards in Italy and Greece are below the levels when they joined the euro. “Finland is the only Nordic country using the euro and it is also the only Nordic country which has not yet recovered from the financial crash of 2008. “There have been many proposals on how to fix the euro and the EMU, but they are politically unpopular and unrealistic.”
Economists Mr Malinen, Dr Heikki Koskenkylä and Dr Peter Nyberg co-wrote the report ‘The Euro May Already Be Lost’, which has suggested there are solutions, but they are extreme.
Eighteen years after the introduction of the euro, the economists argue it simply cannot work without major change. Experts explained one of the main issues as “different growth paths” for member states. As different countries develop at different speeds, the gap between success and failure widens and chances of financial support lessen.
If this occurs during an economic boom, “strengthening aggregate demand supports ailing fields of production” – meaning crashes can be avoided. But this is not the case in 2017 Europe.
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