Friday, March 24, 2006

 
THE EURO. A SKEPTICAL VIEW ON THE EUROZONE EXTENSION
. Desmond Lachman: "Europe's Economic Fantasy", TCS

Desmond Lachman, a scholar at the American Enterprise Institute (AEI), argues that the idea of extending the eurozone to include countries from the former Soviet bloc amounts to an economic time-bomb:

"Not content with the idea of having the current 12 member countries participate in the euro, European leaders keep alive the pipedream of having another 15 countries, mainly from the former Soviet bloc, join the hitherto exclusive club. Yet pursuit of this dream runs the very real risk of accelerating the unraveling of the present currency union, which is already straining under the weight of its internal contradictions".

Read the whole thing. Lachman, by the way, is on the record for comparing Italy's current economic performance to that of Argentina during the second half of the 1990s. Not a very reassuring prospect...

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