Sunday, December 11, 2011
The recent EU summit agreement - the UK aside - to economically integrate, harmonise and centralise is aimed at creating a fiscal union. I cant see how the agreement solves the fundamental problems with the nature of the euro zone though, either economically or politically. Can economic harmony be achieved with socio-economic systems as varied as Greece and Germany, Spain and the Netherlands, Italy and Denmark, Portugal and Sweden? Wasn't it always going to be a problem having one exchange rate over such a huge area? And what of the politics of this? Surely the attempt to bring together such diverse economies - almost creating one much larger country - is likely to cause huge political problems as the people in those countries realise the implications of what has been agreed? There's no realistic joined-up - systems - thinking here. The plan for Euroland is not grand.