The era of a unified currency in Europe is drawing to a close. In the near future, we will have nations deciding to leave the Euro. The only question has been, and continues to be, who is first to leave. Will it be a nation with a surplus, that decides it doesn’t want to share the profits with its poorer neighbors, or will it be a bankrupt nation like Ireland, that eats the bullet up front and regains its sovereign status.
A good friend of mine, who shall remain anonymous, and I have discussed this topic for years. He is from Europe and has a great feel for the average educated wealthy European. He also knows the right people, so his ability to see through the bluster is very insightful.
He believed Europe would last longer than I did, at the start of this conversation.We both have been surprised at the speed of the events of late though.
He was telling me lately, about rumors in Germany, that a new DM had been printed up, after the Germany Vs France pissing match over the Greek bail out this spring. At the time, he was commenting to me about the possibility of a new DM being issued was highly unlikely.
I say all of this as background, to the following quote in the Guardian newspaper today.
“If this is the sort of club the euro is becoming, perhaps Germany should leave,” Merkel replied, according to non-German government figures at the dinner. It was the first time in the 10 months since the euro was plunged into a fight for its survival that Germany, the EU’s economic powerhouse and the lynchpin of the euro’s viability, had suggested that quitting the currency is an option, however unlikely.