Volume 54, March/April 2019, Number 2 · pp. 85-89
The Euro at 20: A New Deal to Save the Euro
As the euro approached its 10th birthday, it was widely proclaimed to be a great success. But with the financial crisis that soon followed, the euphoria was quickly exposed as an error of judgement. Today, the euro at 20 looks frail. In its present state, it is unlikely to reach the age of 30. Only unconventional medicine can save it from a premature death. This paper proposes a ‘New Deal’ between the heavily indebted southern and less indebted northern countries to put the euro back on its feet. To do this, the northern countries have to agree to the one-off monetisation of public debt by the European Central Bank (ECB) and the southern countries need to accept a digital euro competing with other digital currencies.
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