Larry Elliott’s quite right here

Why? Because, although Britain is likely to stay in the EU, Brexit will remain a live issue unless the eurozone can sort itself out. That means either admitting that the euro has been a terrible mistake, or going the whole hog and integrating further, with a single banking system, a Europe-wide treasury, and a democratically elected finance minister with the power to raise money in Germany and spend it in Greece.

That is actually the problem. To make the euro, the eurozone, work it will be necessary to do what no one will actually do.

11 thoughts on “Larry Elliott’s quite right here”

  1. While it’s true that we will not be compelled to join the euro if we remain, unless we do we will have almost no influence. An ever increasing number of decisions are taken by qualified majority voting and the euro-bloc controls an absolute majority (and all new entrants are required to join, so that majority can only increase). As a result, most decisions (and all financial decisions) will be taken with a view to increasing the power to the bilge pumps on RMS Titanic, a situation that will continue until the bow finally disappears under the water.

  2. > it will be necessary to do what no one will actually do

    Why wouldn’t they actually do it? The Germans seem sufficiently self-flagellating to go ahead with this; and obviously the Greeks will welcome extra spending in Greece.

    Depends whether Frau Merkel can steamroller over the objections from e.g. Austria and Finland.

  3. Any Euro area finance minister should first try raising money in Greece.

    Chris Miller,

    I agree. Accepting for the sake of argument that Dave’s piece of paper is binding, it puts the UK on the sidelines. It is worse than being out. It is worse than being in EFTA. We’ve gone from being bound by EU regulation to being bound and gagged by it.

  4. By and large a very good attempt by Larry Elliot to convince whatever floating Graun readers’ votes are still up for grabs, but unfortunately he undermines himself in his final sentence;

    “The wrong comparison is being made. This is not the US without the electric chair; it is the USSR without the gulag.”

    Somehow, I don’t think that will make the EU appear any less attractive to the average reader of that paper.

  5. I sneeze in threes

    A single currency ala the euro can work fine, there is no reason to link a nations currency with its debt. Exiting a currency is just the excuse to steal deposits when you forcibly convert them to you worthless Dracma. It would be more honest just to steal 50% of Greek bank deposits

  6. I sneeze in threes

    The confidence in Greece from joining the Euro made as much as sense as believing Andrea Dworkin joining a gym would help her loose a stone or two. For both cases these memberships were paper based not reality

  7. Despite being in a (money transferring) currency union with England, Northern Ireland is a much bigger shithole than the Republic.

  8. I’ve asked German friends why on earth they believed the figures that were presented by the Greeks. Their response is usually along the lines of: “Of course we believed them, they were official government figures.” Whereas what the Greeks actually meant was: “Here are our official government figures. And, if you don’t like them, we have others …”

  9. “or going the whole hog and integrating further”

    In other words, as usual the solution to all problems is more power to the EU.

    Have we really not noticed that this was the plan all along?

    Out now!

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