The Collapse of the Eurozone: Disaster or Liberation?

Abstract

The current crisis and potential ultimate demise of the European single currency in its exiting format was predictable because it stems from deep-seated flaws within its structure. If policy-makers understood fully the impact of their action, they would never have launched the euro, unless, of course, ideology simply overrode common sense. Only fear of the consequences of a break-up is now keeping it together, and doing so at great cost, both in terms of bailout resources and, more importantly, degrading the life chances of a great number of eurozone citizens, clearly never the intention of the European integration project. The present chapter seeks to remove this fear through an analysis of the probable consequences.