The Euro is a lame duck currency
Barring a last minute softening of the posturing on both sides of the debate, the EU seems determined to enable the next in the chain of interminable, Eurozone crises.
Firstly, the Greek electorate appears to have been gulled into thinking their economic position would suddenly and miraculously improve, if they leave the Euro, whereas the much more likely reality is that the economic hardship would get considerably worse, over a significant period of time, before matters genuinely improve.
Secondly, the rest of the Eurozone is still laboring under the delusion that the Euro is not a fundamentally flawed project, in its current form.
As a result, the EU's constituent national governments continue to resist the economic imperative of Federalisation, which would allow the currency to function properly.
Bureaucrats have been fudging the matter ever since 1995, because of the implications it has for sovereignty, while ignoring the fact that the US dollar works as a currency, precisely because there is State and Federal government, with an annually agreed Federal budget, despite the fact some States are significantly wealthier than others.
As long as petty nationalism is allowed to interfere with pragmatic economics, the Euro will continue to be an exercise in futile, economic fire fighting, indefinitely.
Labels: Debt Crisis 2015, Euro, Greece, Summit