Getting out of the Euro… Seriously ?Posted: February 15, 2010
Since the deficit crisis broke out in Greece[*,*], some euro-skeptics talk more and more about either kicking the indebted countries out of the euro-zone [*] or getting their own country out to escape a possible crash of the European currency[*].
I am not an economist, and some experts may have very convincing, complex and coherent arguments to support this option that I would like to hear. But nevertheless, I don’t really think this would be a magic solution (or even just a solution) to solve this crisis.
Let’s get serious a minute. Do you remember how long it took to prepare the Euro ? There was a 3 years long span between the currency rates being fixed and the actual coins and bills being introduced[*]. European were eager to get their hands on this new money.
Does anybody actually think that using an emergency exit of the euro-zone would improve an economy ? or event would be easy ? Recreating an old money, printing the bills, making all the structural changes needed to get the economy running on the new currency, … This will take a huge amount of time and money. And even if the government will get its hand back on the monetary politics and central bank rates, this will not make the economy more solid in the view of the world markets, probably even the opposite.
There is a crisis and strong actions are needed. Extraordinary measures have to be taken, and the overall organization of the euro-zone will certainly undergo a significant set of reforms.
Sorry euro-skeptics, but in my opinion (which is not much, I give you that) the euro-zone has no other solution than to strengthen itself and getting out is the worse solution both for the euro, and for the countries which would get out.