Ambrose reports Derek Heathcote-Amory on the euro crisis:
The Germans will pay up, accept eurobonds, and mobilise enormous firepower. They are not out of ammo yet.
But this won't save monetary union in the end because it is not a debt crisis. It is a currency crisis. The weaker states are uncompetitive and you cannot force them to deflate their way back to competitiveness by cutting wages 30pc. The EU elites won't admit it, but the euro experiment is over.
Already the Greek and Italian students are demonstrating. You cannot govern southern Europe as if it was northern Europe.
2 comments:
"You cannot govern southern Europe as if it was northern Europe."
Which in spite of all the economic analysis is the nub of the problem.
Now sit back and watch them try.
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