From today’s Open Europe news summary:
Persson: Eurozone still an awfully long way from becoming a healthy and vibrant economic blocIn the Sunday Telegraph, Mats Persson argued that while the risk of a euro breakup has subsided, “the currency zone is still an awfully long way from becoming a healthy and vibrant economic bloc.” He notes that Germany is unlikely to be able to carry the Eurozone in the long-term: “Bear in mind that at the moment, Berlin seems to be doing its utmost to lose its competitive edge: the current coalition has introduced a high minimum wage, lowered the retirement age and is sticking to a commitment to eliminate nuclear power in favour of renewables, raising costs for everyone.”
When the German economy fails, the EU and the euro fail. Germany has subsidized Europe for years without beneficial effect, and now its own economy is ailing. Furthermore, its own politicians seem determined to weaken it even more. Philipp Bagus‘ prescient analysis of the inherent flaws in the euro are coming true.