Monday, 6 May 2013

Creator of the EURO wants to break up the EURO

Oskar Lafontaine, the German finance minister who was behind the creation of the EURO, has suggested that the single currency should be broken up to allow Southern Europe to recover and said that present policies are leading to disaster.

The truth about what was going to happen was known form the very beginning. The creation of the EURO was a political initiative, not an economic initiative. From an economic point of view it did not make sense to tie up the most powerful economies in Europe with the weakest economies in Europe. The industrial powerhouses of Europe have ended up subsidizing the agricultural economies of Europe that couldn't possibly aspire to have the same kind of financial muscle.

Now, Oskar Lafontaine is asking to divide Europe between those who are successful and those who are failing to stop draining resources that have been falling into an international sinkhole. German voters are getting increasingly fed up because much of their tax monies are vanishing into thin air.

The break up of the EURO is going to have political consequences and it is a reality call for many. Federal Europe is based on the existence of the EURO and refloating local currencies will really and trully bury the myth of 'we are all in this together'.

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