In his new book The End of Alchemy, Lord Mervin King, former governor of the Bank of England (the Old Lady), argues that the Euro will break up because it is formed by countries too divergent to work together. So even if the North would cancel the debt of the south the structural problems and tensions will remain. He summarises his argument in an op-ed published by The Telegraph here.
Once I read his piece, I immediately asked my colleague Erik Jones to write together a response to Mervyn arguing that the Euro is not really the cause of the Eurozone’s problems, and that the solution is not going back to the old national currencies but rather further fiscal integration. One point we make is that the majority of Eurozoners want to stick to the Euro. So what makes Lord King believe he knows better than them…Luckily, the editors of The Telegraph liked our piece and it was published here. We thank them for giving us the chance to get our views to their readership and to Lord King.