Wednesday, September 26, 2012
The price of saving the eurozone
September 26, 2012
A few things have happened in the weeks since I was last here, so there may be some merit in reflecting - briefly - on where we find ourselves at the beginning of the new school term (so to speak).
On balance, the biggest risk to our prosperity, total meltdown of the eurozone, has diminished, though it has not been extinguished.
As you'll know because I've bored you to tears about it many times, there is a compelling argument that the long-term survival of the eurozone requires its national members to cede considerably more autonomy than they have hitherto done on the management of their economies and public finances: it requires the eurozone being transformed from pure currency union into a political union that looks more like a federation.
So what was most important over the summer is that there have been greater moves in that direction than at any point in the eurozone's inglorious history.