Stripped of ambitions for a political and economic union, the bloc changes into a utilitarian project, says Wolfgang Münchau, columnist of the Financial Times.
(…) From a pure economic point of view, we know that the euro has worked well for Germany. It worked moderately well for The Netherlands and Austria, although it produced quite a degree of financial instability in both.
But for Italy, it has been an unmitigated economic disaster. The country has seen virtually no productivity growth since the start of the euro in 1999. If you want to blame the lack of structural reforms, then you have to explain how Italy managed decent growth rates before then. Can we be sure that a majority of Italians will support the single currency in three years’ time? (…)
Full article on the Financial Times