by Peter Wahl
Nobel price winner Joseph Stiglitz has released a new book: “The Euro And Its Threat to the Future Of Europe”
It is a sharp critique of the EURO-system and of its disastrous economic and social consequences.
Although Stiglitz confirms in his new book again that he is a passionate supporter of European integration, he comes to the conclusion: “A common currency is threatening the future of Europe. Muddling through will not work. And the European project is too important to be sacrificed on the cross of the euro. Europe—the world—deserves better.“
Theoretically the best way out would be for Stiglitz a qualitative step in deepening integration and the establishment of the economic and institutional conditions that would make the EURO make.
However, Stiglitz recognizes that this is completely unrealistic. Therefore he suggests two possibilities:
1) The option of a managed exit for a single country or a group of countries, which he calls “amicable divorce.“
He thinks through this possibility along the example of Greece (foreign debt, trade imbalances etc.). He comes to the conclusion, that a well managed exit would be less costly than staying in the EURO. The best option for the EU would be, however, if Germany would leave the EURO.
2) A flexibilisation of the currency system, which allows each member country to make its local currency float within a corridor, which would have to be agreed politically among member states.
By now, the book is available only in English. It is edited by Penguin Books, and can be ordered online. Price: 19,99 €.