February 12, 2010

TORY, BUT RIGHT:

Why the Eurosceptics were right all along (Peter Wilby, 12 February 2010, New Statesman)

The Eurosceptics are in the ascendancy. They may be mostly Tories, but they have been proven right. In previous recessions, the troubled eurozone countries -- Greece, Portugal, Ireland and Spain -- would have eased their economic problems by devaluing the currency, printing money (now called "quantitative easing") and cutting interest rates. These levers are no longer available, so they have no alternatives to immediate cuts in public spending, together with steeply rising unemployment, falls in wages and drastic reductions in benefits.

Thus, as the Eurosceptics warned, a single currency leads to loss of sovereignty, which sounds like an abstract idea until you get a crisis like this.

Posted by Orrin Judd at February 12, 2010 9:38 PM
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