Breaking up the Euro
“I am sure the Euro will oblige us to introduce a new set of economic policyinstruments. It is politically impossible to propose that now. But some day there
will be a crisis and new instruments will be created.” Romano Prodi, EU Commission President, December 2001.
The Euro should not exist.
More specifically, the Euro as it is currently constituted – with its current structure and current membership – should not exist. This Euro creates more
economic costs than benefits for at least some of its members – a fact that has become painfully obvious to some of its participants in recent years.
The Global Economic Perspectives draws on the research UBS has published over the past fifteen years looking at the issues surrounding the Euro and its existence. If the Euro does not work (and it does not), then either the current structure needs to change, or the current membership needs to change. Rather than go through the options for keeping the Euro together (fiscal confederation being the central idea, and our base case), we look at the consequences of attempting to break up the Euro.
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http://www.scribd.com/doc/64020390/xrm45126
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