Since the European sovereign debt crisis occurred in 2010, I am fighting to convince investors that the Eurozone will not disappear.
The euro is one of the healthiest currencies of all the legal tender in the world. But just about every Doctor of Economics and Nobel Prize laureates do not agree. They said that Greece should be ejected from the Eurozone, that Spain should emerge from it, that Germany and the Netherlands should form their own "northern European" currency, and that the euro would go Fall under $ 1.
They were wrong all along the line.
Greece and Spain are still part of the Eurozone. Germany, the Netherlands and France still provide the leadership of the Eurozone. The euro has never fallen below $ 1.03, even at the height of the euro crisis. In fact, the number of countries joining the Eurozone has increased from 16 to 19 since I debated the strength of the euro.
These critics base their arguments on the fact that the Euro Zone practices a common monetary policy but not a single fiscal policy, and that this is a formidable flaw allowing deficit debtors such as Greece to take advantage of the solidity Of the euro. But these defects were identified from the start. The European Union and the Eurozone have always been political, not economic, projects. But "politics is the art of the possible," said Gambetta.
European leaders knew that a common fiscal policy and a single bond market would be required at the end of the day, but citizens were not ready for such a level of integration at the launch of the euro in 1999. Consequently, the leaders decided to proceed in small steps, the first being monetary union, and to set up the budgetary union later. This approach can be called "Even more Europe". Europe's problems are not solved by disintegration but by stepped-up integration. Now is the time to move on to the next step.
This article indicates that the German Finance Minister, Wolfgang Schäuble, calls for the creation of a new "parliament" composed only of members of the Eurozone. It is only one step from there that a finance minister from the Eurozone is appointed and that a single fiscal policy is in place. I maintain my forecasts of strengthening the euro. Unfortunately, the US and British elites still do not understand
http://www.reuters.com/article/us-eurozone-future-schaeuble-idUSKBN1871FG?il=0
