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09 October 2011

FT: Save Europe's unity now


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The article claims the policies needed to end the crisis are hard, but feasible. Europe is on the brink because it is unable to muster the political will to do what it must.


Repairing the monetary union will require hard labour for years, but the alternative is worse. The economic costs of a break-up would be staggering for creditor and debtor nations. The political consequences are as grave. The euro was portrayed as the last step to rid Europe of the demons of nationalism and war. Cracks are already visible in the edifice of European unity – witness the strain on the Schengen visa-free travel scheme. The euro’s collapse could bring it down altogether.

Policies to put funding for Europe’s sovereigns and banks on a secure footing cannot wait. But wait they will until leaders fill the most serious deficit threatening the euro, that of trust – between countries and between voters and leaders. In this respect, Mr Cameron’s intervention is welcome. The UK has nothing to gain from the euro’s break-up, but the prime minister is also stating starkly what is needed for its survival. Germany, which has much more to lose from a break-up than from putting money behind a solution, should make the case more strongly to its people.

Above all, leaders must create the political conditions for good policy. Monetary union can only survive if each of its members wants it to: without voter support Europe will fail.

Full article (FT subscription required)



© Financial Times


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