As I understand it, Helmut Kohl was a big proponent of one European currency as a step to unify the countries and reduce the chances for future war within Europe.
Too bad he is likely to be proven wrong.
But if there were more controls against free-riding and profligate spending, or better checks against government perpetrated fraud in order to gain admission, they may have pulled it off. It’s one thing to have the euro zone more tightly connected economically. It’s another to have a wholesale extraction of wealth from the producer countries to the non-producing countries. Too bad it’s the latter now.
But with multiple governments teetering on bankruptcy, including Cyprus, the masters are taking a bold step on the poor saps that were foolish enough to actually place their funds in Cypriot banks.
Confiscating up to 10% of bank deposits is a very scary move which may accelerate the slide to doom for the Euro. And it ought to be doomed.
It will be interesting to see what depositors do…do they wait for “no really, this is the last time we do this, honest”?
I know what I would do..not give them a second chance.