WORLD RENOWNED ECONOMIST SAYS EU SHOULD SCRAP THE EURO – Nobel Prize winner and world renowned economist Sir Christopher Pissarides today admitted that it was erroneous to support the creation of the Euro and has called for it to be dismantled.
Sir Christopher Pissarides once a staunch supporter, now feels that the single currency is creating a ‘lost generation’ of unemployed youth and is driving a wedge that is seriously dividing European nations.
In Sir Christopher Pissarides opinion two elements are critical if the single currency is to survive and derive benefits to European citizens; these being to restore the credibility of the Euro on the international money markets and to restore trust between European nations. Unfortunately Sir Christopher Pissarides feels that neither can materialise and therefore the Euro will likely do far more damage to European nations.
Earlier this week Christine Lagarde, head of the International Monetary Fund (IMF) dismissed claims by some European Commissioners that the crisis in the Eurozone was either easing or indeed over.
Christine Lagarde gave a statement in which she declared:
“Can a crisis really be over when 12 per cent of the labour force is without a job? When unemployment among the young is in very high double digits, reaching more than 50 per cent in Greece and Spain?” Christine Lagarde, head of the International Monetary Fund
A number of other experts have waded in stating that the divisions between European nations will never be able to increase growth or create sufficient jobs; such a notion is clear when the German taxpayer’s refuse to tolerate handing over vast amounts of funding in order to prop up failing economies such as Greece, Spain, Portugal and Italy due to mismanagement and massive over-spending by their respective governments.
Such is the decline of the European Union; even France, whose economy is the second largest behind Germany is now declaring a crisis and has been labeled by many economists as ‘the sick man of Europe’.
One of the underlying issues with the European Union appears to be the lack of fiscal union resulting in wealthier nations continuously having to prop up the economies of poorer nations; something that is often brought about due to vast over-spending with no fiscal responsibility.
Currently the perception from the European Central Bank with what it declares as a ‘one size fits all’ policy is clearly not working and will inevitably plunge the Euro into deeper crisis.
According to reports the Eurozone economy grew by just 0.1% in the third quarter of this year resulting in a significant margin from the 0.8% economic growth rate of Britain and 0.9% to that of the US.
Some 19 million or 12.1% of the population across the EU is now unemployed and with the EU’s economy showing no signs of improved growth it is likely the unemployment rate will continue to grow adding to the crisis the Eurozone now faces.