Charlemagne: On a wing and a prayer

Nota sobre la difícil situación del Euro y de Europa: sin política fiscal y con política monetaria restringida, la moneda se debilita.

The financial storm has reopened the debate on the euro’s flawed design

IT WAS a perfect take-off for what had seemed an unlikely invention. The euro became legal tender on January 1st 2002 in 12 European Union countries (now 16) and was soon cruising comfortably as a global currency. Economic performance was not spectacular, but the European Central Bank proved a competent pilot and inflation stayed low. Like the Wright brothers, who showed it was possible to create a heavier-than-air flying machine, the inventors demonstrated that a single currency could operate without political union. That was easy in fair weather. But can the euro withstand today’s hurricane?