Why I continue to support the euro (short comment)
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As you might have realized my articles are rather long, but for once I shall make an exception. Reuters came up with this report:
“European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro”
Do you now understand why I always insist on keeping the euro in tact during this crisis? Do you realize how far such restrictive measures can go? A break up of the euro today, or unilateral exits would open a broad sluice gate for all sorts of protectionist policies and state despotism. Capital controls would drastically diminish liquidity and investments. Quotas and tariffs would impede free trade. Subsidies and privileges to bankrupt or important sectors would distort fair competition. Stringent migration measures would restrict liberty and progress (migration is progress). The state apparatus necessary to maintain all these checks would effectively have to be aggrandized.
All the above will lead to a further impoverishment and immiseration of most people in Europe and will effectively challenge the very democratic and social principles of this continent. Such a prospect is in my view far worse than trying to deal with the structural flaws of an undoubtedly imperfect eurozone. My support of the euro is above all a realistic and holistic cost-benefit calculation, not some mystical belief in the “need” for a single European currency to engineer some grand plan of European integration (real integration is among people, not central banks). I support the euro because I do not want to go back to the Europe of the 1930s’.
Image Source: Wikipedia