Thursday 18 January 2018

Stephen Kinsella: Eurozone's strength is also at the heart of its undoing

If Ireland left the Eurozone, savings would evaporate, businesses would collapse, there would be turmoil, writes Stephen Kinsella

The euro will break up when the major forces holding it together begin to work against one another. At the moment there is immense pressure on the members of the eurozone to keep the euro intact, because any change -- such as Greece leaving -- would be detrimental to the world economy.

Those who look at the euro see an imperfect structure struggling to cope with changes in its internal and external environments. They argue the stresses that the eurozone is under -- the debt problem, the banking problems, the unemployment and social unrest -- will eventually tear it apart. They don't understand the history of the European Union. It was created as an economic solution to a political problem -- how to stop the nations of Europe from killing each other. The strategy pursued since World War Two has been incremental integration when times are good.

So for example in the early Nineties, during the Maastricht Treaty negotiations, it was clear to everyone that the structure they were building -- a single

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