Nobody was more against the creation of the euro than Bernard Connolly, a senior European Commission official when the single currency’s foundations were being laid. He saw such danger in abolishing national currencies that he wrote a book warning against doing so in 1995. He has now republished the book (which cost him his job) with a new introductory essay [watch his engaging interview with Rick Santelli here]:
It is a timely contribution from someone who can lay more claim than most to foreseeing the long-unfolding crisis. Back in 1995 he wrote: “Trying to lock countries like France and Germany together via their currencies turns domestic monetary questions into international political conflicts. It damages the economic and political well-being of every country involved.” This now appears remarkably prescient.
Connolly’s argument was based on two pillars. The first was that Europe’s elites had become so obsessed with integration that they ignored all the risks and dangers of currency union in order to further their project. To this political argument he added an economic one: that the euro would not work because any and all attempts by governments to interfere in how markets determine exchange rates are economically and politically damaging…
Connolly dismisses as a “propaganda slogan” the claim that the EU has prevented war in Europe and describes those who talk of “building Europe” as being akin to Bolsheviks in their ideological single-mindedness.
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