Monday, May 17, 2004

Will the eurozone survive till 2010?

As the new members are discussing the possibility of their entering the eurozone, whether they are prepared or not, an influential voice has cast doubt on the whole enterprise. In an interview given to the EUObserver, Nobel Prize winning free-market economist (whose track-record on being right is quite spectacular) has suggested that “there is a strong possibility that the eurozone could collapse in the next few years because differences are accumulating between countries.”

This is not absolutely certain but the differences in the economies, particularly with the entry of the new members, makes running a single currency more and more difficult. Professor Friedman also made it clear that in his opinion the EU is “strangling” the economies of different countries “with rules and regulations”.

Either Professor Friedman was not asked or he did not express an opinion on the EU attempt to build a single economy and the chances of that succeeding.

For full article click here.

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