Al Jazeera: The Euro is First and Foremost a Political Project – Intrinsic Political Considerations will not Allow the Collapse of the Euro Zone

Mirtchev, A. (2010, May 11). The Euro is First and Foremost a Political Project – Intrinsic Political Considerations will not Allow the Collapse of the Euro Zone. AlJazeera.

Al Jazeera04 Al Jazeera Greece Alexander Mirtchev 01Dr. Alexander Mirtchev, President of Krull Corp., in discussion with Dr. Yannis Papantoniou, former Finance Minister of Greece, assessed the survival of the single European currency, determined more by the political nature of the European project and the vested political interests in its survival than by the economic fallout caused by some of the Eurozone’s unstable and debt ridden economies. The impact of the unfolding European sovereign debt guarantee plans and financing mechanisms deployed to address European countries’ balance sheet problems would inevitably affect the broader future of the single European currency. Despite the unsustainable economic arrangements that underpin the Eurozone’s developments, it is unlikely that this project would be allowed to fall apart; indeed there is no Euro ‘exit strategy’.  It is hard to imagine, after a decade of the Euro, member countries rushing to embrace their old currencies. The Euro will survive, but, in the long-term it must be supported by sound economic leadership and policies, not the emotional rhetoric from which it was born. Due consideration should be given to navigating the upcoming risks associated with this survival, however, in particular that of a two-speed Europe emerging, which could bring its own long-term destabilization factors