To abolish Euro? – a very bad idea
Definitely demography is the main factor to be blamed for the recession in Europe and in Japan as well. But it is not the whole story.
Historically most of Europe’s or the Christendom’s disasters were caused from its division to so many independent political entities (sorry; states, kingdoms) that were stacked in their concept of political independence. This division always served only the ruling elites, as they instigated for hate and conflicts among the population of those separate states, to sustain this separation and by it also legitimizing their rule. At the end of the day what all these wars in Europe were about? From today’s perspective nobody can find justification for any of these wars and mainly not for the last one, that ended less than 70 years ago. Now that Europe is slowly and surely losing its significance as economic and political power on the world stage, if it wants to defend some of its declining significance, and secure decent standard of living for its aging population, it has to create one united political structure. Any development against this direction will be unfortunate from any perspective. The Euro Zone crisis started to push the events to right direction and fortunately it happened now and not ten years from now and pity it did not happened five years ago. Just try to imagine what would be, if Greece could continue to live on deficit for another 10 years. Their debt would be by then more than trillion Euro (in today prices), add to it Spain, Portugal and Italy, and everybody can understand, that you would need ten Germanys to solve the problem. What happens now, is a lesson, that the politicians had to learn (something they tried very hard to forget) that with common currency, there has to be one coordinated fiscal policy, meaning they can’t play for ever the play of economic sovereignty. We are still far from having in Europe one federal budget department, one economic legislation and one taxation. I just hope, the leadership of the net lending states will have the strength not to give up their demands to lessen the economic sovereignty of the individual states in the EU. Those who call to oppose this trend are looking for very, very short term goals. Since today it is hard even to remember the Irish rejection of the Lisbon treaty that happened at June 2008 , I am rather hopeful for EU.