Copy of my reply to an excellent post by Martin Wolf at the FT http://www.ft.com/cms/s/0/c3085eb4-202d-11e1-9878-00144feabdc0.html#comment-1582226 :
Careful, Mr Wolf, with comments like this – “the initial design of the eurozone was defective, as most intelligent analysts then knew; it has also revealed – and, in the process, exacerbated – a fundamental lack of trust, let alone sense of shared identity.” (No matter that Mr Delors admitted as much only the other week.)
You risk being castigated as a euro-sceptic – told you simply don’t understand – worse still, vilified as a xenophobic little Englander – for daring to view the euro through anything other than rose-tinted spectacles.
In this febrile atmosphere it seems you are either a euro-fanatic or you are an enemy of the glorious project – there is apparently no middle ground – rational, logical, analysis routinely gets heckled as the enemy of vision. Shooting the messenger is the MO of EU Commission flunkies.
Naturally the only ‘real’ solution is to forge ahead with (as George Osborne rightly called it) ‘the inexorable logic of ever closer union’: full fiscal and political union, a single treasury (logically controlled by a single executive, answerable to a single legislature), harmonised taxes, and a generous transfer union. The dream of the founders must be realised at all costs – however painful or tragic.
I wish you luck with your words of advice but fear they are too little, too late – much as the cry of ‘Iceberg’ in 1912 could not save the Titanic – so the cry of ‘credit’ will not save the euro.
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Thank you Dr Alf Oldman @DrAlfOldman for posting a link to this post on his blog post: http://dralfoldman.wordpress.com/2012/01/10/the-delicate-balance-of-fixing-the-eurozone-martin-wolfs-exchange-economic-commentary-from-the-financial-times-ft-com/