We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Can the Euro Be Saved?

12 77 88
13.06.2018

NEW YORK – The euro may be approaching another crisis. Italy, the eurozone’s third largest economy, has chosen what can at best be described as a Euroskeptic government. This should surprise no one. The backlash in Italy is another predictable (and predicted) episode in the long saga of a poorly designed currency arrangement, in which the dominant power, Germany, impedes the necessary reforms and insists on policies that exacerbate the inherent problems, using rhetoric seemingly intended to inflame passions.

Jun 8, 2018 Yoon Young-kwan urges a combination of political boldness and realistic prudence in denuclearizing North Korea.

Jun 6, 2018 Minxin Pei worries that the US lacks the leadership needed to manage a geopolitical rivalry.

Jun 5, 2018 Ian Buruma reflects on the public culture of an age in which we have become privy to others' unfiltered thoughts.

Italy has been performing poorly since the euro’s launch. Its real (inflation-adjusted) GDP in 2016 was the same as it was in 2001. But the eurozone as a whole has not been doing well, either. From 2008 to 2016, its real GDP increased by just 3% in total. In 2000, a year after the euro was introduced, the US economy was only 13% larger than the eurozone; by 2016 it was 26% larger. After real growth of around 2.4% in 2017 – not enough to reverse the damage of a decade of malaise – the eurozone economy is faltering again.

If one country does poorly, blame the country; if many........

© Project Syndicate