If Baroness Thatcher were still alive and well today, I am sure she would be speaking out strongly against the economic stupidity of continuing Eurozone policies, which have delivered unemployment of 19.2 million, and youth unemployment of 56% in Spain, 38% in Italy and 59% in Greece. Nor do I think she would like Angela Merkel being compared to her, where the one thing Mrs Merkel has not done is to provide the leadership and courage to address the Eurozone problems effectively.
To any self-respecting economist it is quite clear that the Euro has been an economic disaster, imposing “gold standard” depression on Southern Europe – now even extending to Holland. The essence of the problem is that Germany made itself super-competitive within the Eurozone, where, without the flexibility of currency adjustment, most of the other economies are locked into depression. What makes the problem worse is that the German imposed austerity measures are serving not only to depress the uncompetitive economies further, but also to increase their fiscal deficits and funding problems.
Enlightened German leadership should recognise the fundamental problem and exit Germany, (with Finland and Austria), from the Euro, creating a strong, Northern European currency, and leaving a weak Euro which would restore the competitiveness of Southern Europe.
Worst of all, Germany fails to recognise that it was similar austerity conditions, resulting from the post-World War I German reparations, which ended up, politically, with Hitler. Italian politics have already become unstable. It is to be hoped that if Germany is not willing to provide the leadership to break up the Eurozone, Italy will do this de facto – at the same time letting off the steam of what might otherwise be politically dangerous.