The Pretendy Currency Endures

It is clear that the establishment of the eurozone has failed to bring about the promised economic growth, reduced inflation, and protection against economic disruptions.

Far from converging, the eurozone economies remain split in two camps: the bourgeois north and the Club Med south – with Ireland and France in between.

The founding decision was totally political and took little account of the gross unsuitability of this group of countries for a single currency project.

While the initial exchange rates may have loosely reflected the economic reality of the time, the economic performance of individual nations has been hopelessly divergent.

However so much political capital has been invested in the project that it may well stagger on at huge cost even to nations like the UK who kept their own currencies.

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