The Flawed Economic Architecture of the Eurozone
A European currency will lead to member nations transferring their sovereignty over financial and wage policy as well as monetary affairs. It is an illusion to think that states can hold on to their autonomy over taxation policies.
Hans Tietmeyer, President of the Deutsche Bundesbank (1993–99), 1991.1
As noted in the previous chapter, the implementation of the euro created an economic union that was designed to fit the political constraints of the EU. These constraints caused the currency union to lack important characteristics that have proven important and even essential to the stability of common currency areas. Successful monetary unions have historically required three characteristics ...
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