Euro 'house of cards' to collapse, warns ECB prophet

[birding]

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.


"One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in the construction of the single currency.


Prof Issing said the euro has been betrayed by politics, lamenting that the experiment went wrong from the beginning and has since has degenerated into a fiscal free-for-all that once again masks the festering pathologies.

More at :

Euro 'house of cards' to collapse, warns ECB prophet

[buriramboy]

Wasting your time as all the hardened europhiles on here will just regard it as nonsense and continue with their misguided unfounded views that the EU is some sort of utopia bringing untold wealth to its citizens.

[cyrille]

Yeah and we all want to be Muslims too.

Really, are you as pathetically addicted to strawmen as the likes of piwanoi?

[thaimeme]

Som Nam Na.....

[Begbie]

Sounds like an attempt to talk the Euro down. The massive devaluation of the pound is causing other central banks to play devaluation catch up. 1930s here we come courtesy of the Tory idiots.

[birding]

Someone has to try to blame Brexit.

Read the link and you will see that it started way before then....according to the professor.

[DrB0b]

Someone has to try to blame Brexit.

Read the link and you will see that it started way before then....according to the professor.

Did you read the article in Central Banking or only the highly simplified verion you linked to in the Telegraph?

[CaptainNemo]

...meanwhile, in Belgium, the Walloons are holding up a trade deal for 27 other nations that's taken years to negotiate, all because they are worried about competition.
...and you wonder why the Euro is struggling like a massive fat man with little legs.

2017 brings the French and German elections, and the beginning of the British exit; those who think that is not going to precipitate "uncertainty" in currency values are

massive idiots.

If you want a

verion

closer to the source, how about:
Integration or disintegration? The view from Germany, Greece, Poland and the UK | St Antony's College
https://www.econstor.eu/handle/10419/146880
On the Relation of Monetary and Political Union | SpringerLink

The underlying problem with the EU it's inability to question the axiomatic ideas underpin the treaties that founded it.

Treaty of Paris 1951

...that Europe can be built only through practical achievements which will first of all create real solidarity, and through the establishment of common bases for economic development

...is fundamentally Marxist.

...lay foundations for the institutions which will give direction to a destiny henceforward shared

..."destiny" indeed, sounds almost magical.

The Spaak Report
"common external tariff", "European interest", these are the structures of a state.

In addition to this common commercial policy a harmonious approach (attitude convergente) will be developed in international and monetary relations

Chapter 3 - The Free Movement of Labour
Each State will increase annually the number of workers from other member States which it will alloy to be employed

Though section b. recognises the problem with that:

The European Commission will decide on the necessary protection measures in order to avoid an inflow of labour which would be dangerous for the standard of living or employment of workers in certain specified industries, without affecting the rights acquired by foreign workers.

It is fundamentally not the right of the European Commission to decide on such things, that must only be a decision by a sovereign population and their elected government; so "3.d." is also unacceptable.
Rome - Preparation
http://aei.pitt.edu/995/1/Spaak_report.pdf

Never mind "ever closer union", this part is the architecture of a state:

establish a citizenship common to nationals of their countries,

These two are self-evidently mutually exclusive ideas:

convergence of their economies and ... a single and stable currency

You have to either move people or move capital, and both are objectionable, even within an actual nation state, as we see in old countries with large capitals, like the UK.

https://en.wikisource.org/wiki/Conso...Union/Preamble

[wasabi]

When Scotland joins the EU , it will be saved by bonnie Sturgen.

[Cold Pizza]

I posted this article last week. Those further interested can see the European crisis thread. Its very informative.