Anthony Sargeant forwards this warning to all of his Scottish friends with whom he sympathises with for wanting Independence
Mervyn King warned that the project is doomed, is it time for the Eurozone to be broken up?
Ruth Lea, economic adviser to the Arbuthnot Banking Group, says Yes.
The Eurozone was always primarily a political project, a major stepping stone to the “ever closer union of the peoples of Europe,” but one with the profoundest economic consequences. Members have no control over their interest rates, their exchange rate or, indeed, fiscal policy. And, as we have seen in recent years, many Eurozone members have paid a bitter price for their loss macroeconomic sovereignty. Under the austerity cosh and with no ability to devalue their currencies, growth has disappointed and unemployment rates remain alarmingly high in Greece, Spain (albeit partly-recovering), Italy and Portugal. Looking ahead, there is no reason to believe the policy situation will fundamentally change. Fiscal discipline is entrenched and unremitting and, contrary to speculation, there are no signs that Germany will ever agree to a fiscal transfer union in order to support the weaker countries. The Eurozone simply lacks the demos and “solidarity” to enable the currency bloc to work for all. It’s time to break it up.