Quote Originally Posted by Kagemusha View Post
Also to the matter.The former CEO of German BDE Hans Olaf Henkel advocated today on interview for Financial times that the Euro should be broken up in two. He had a good idea of splitting the monetary Union into two, so the the stronger economies could keep a stronger currency and the ones that are in poor condition would benefit from weaker currency.That would be a solution i would accept.
This will only work so long as the relativity within the economies of the two sets of countries remains constant, which of course it will not. As soon is there is divergence (eg. like that between Germany and Greece in the past cycle) there will be another set of fiscal problems within the shared currency, whichever one it is.