A shared currency as an alternative to the euro
by Frédéric Lordon
(This is an abridged version with Focus on the proposal of a shared currency which should replace the single currency. The full version of Lordon´s article is online here.
Many people, especially on the left, still believe the euro can change, that it can be transformed from a euro of austerity into a renovated, progressive, social euro. That will never happen, and you could guess as much from the lack of political control that is the result of the institutional paralysis of the European monetary union.
The euro in its present form was created by a structure that has given, and was designed to give, full satisfaction to the capital markets and has allowed them to gain control of European economic policies. Any attempt to change the euro significantly would be an attempt to dismantle the power of the financial markets and exclude international investors from the formulation of public policy. The markets will never accept any project clearly designed to deprive them of their disciplinary role. As soon as any such project gained political weight, it would start a storm of speculation and a market crisis, allowing no time to set up an alternative monetary structure and resulting in immediate reversion to national currencies.