Vice-Chairman of EuroThinkTank States “Euro May Already Be Lost”
This article comes from MishTalk.com
by Mish Shedlock
Thank you for an excellent blog. I’ve been an enthusiastic reader for years.
I am the vice Chairman of EuroThinkTank, a group of economists and financial market experts (and a statistician) studying the future of Eurozone. We have recently published a working paper, How to abandon the common currency in exchange for a new national currency, and we are in the process of preparing a report on how Finland could leave the eurozone.
Concerning you recent piece, Blinded by hate, I was wondering have you noticed our piece in HuffPost entitled, The Euro may already be lost?
We go through the scenarios of euro -survival and find them to be extremely unlikely.
With Best Wishes,
The Euro May Already Be Lost – Tuomas Malinen
The 1st of January 2017 marked the 18th anniversary of the European common currency, the euro. Despite its success from 1999 to 2007, after 2008 the euro has become a burden for many of its members. For example, living standards in Italy and Greece are below the levels when they joined the euro. Finland is the only Nordic country using the euro and it is also the only Nordic country which has not yet recovered from the financial crash of 2008.
There have been many proposals on how to fix the euro and the EMU, but they are politically unpopular and unrealistic. In this blog-entry, we will argue that the euro will almost surely fail; we just do not know the exact timing of its demise.
Problems of the euro are structural and persistent
The problem of the euro can be visualized in the development of the GDP per capita.
Germany has been successful in the Eurozone, while Greece and Italy have not. France is not doing well either. The jury is still out for Finland.