Is the Eurozone doomed to fail?

Is the eurozone doomed to fail? Making predictions would be silly, but I can safely say it should never have existed the way it is because its design is a failure. Countries culturally and economically very different decided to share the same currency and to introduce common rules that only bring rigidity to the economies and over-bureaucratize everything, that’s Europe.  The good side of the equation is that all countries of the eurozone are benefitting with lower borrowing costs, which for debit-burden countries like Italy, Spain, Portugal and Ireland it’s great. Common sense dictates that if you can borrow cheaply then you invest to improve your competitiveness and to expand your productivity. However, common sense does not exist in the Eurozone. In recent years of crisis and extreme fragility of our economies what Europe decides to do? Austerity! It sounds pretty much like masochism. I know, debit is bad and if you already have lots of it, it’s particularly bad but the debit we contracted in the past was bad debt. In fact, the majority of it went on improving our standard of living and in creating jobs via bureaucratization of our society losing significantly competitiveness. The difference was that in the past this model was still sustainable because our economies were expanding. The austerity imposed by Europe is not working simply because it’s hampering growth, therefore even if we spend less we create much less, we have fewer jobs and the few people that work have to accept a lower pay. I don’t think this model is sustainable neither.

europe

What Europe should do is actually use the fact that can borrow cheaply and invest this money in a smart way. For example: to improve our infrastructures or to invest in new technologies that would allow our industries to compete with the emerging markets. Moreover, European countries should start buying energy or raw materials together to get better deals. But this is still not happening, why? Because every member of the Eurozone think about itself and nobody bothers if a country is in difficulty. This means that Europe is a paralyzed union, doomed to act always too late because its members cannot agree on anything (unless the US commands it, like imposing sanctions on Russia). A pitiful example of this can be seen today when Germany is constraining the ECB making it powerless (what’s the point of having a central bank if it has no powers?). Today, especially the southern countries of Europe are experiencing difficulties. The main problem here was that for years a stronger currency was enforced on them, gradually destroying their exports and their competitiveness, it’s no coincidence that countries like Italy, Spain, Portugal and Greece stopped growing since adopted the Euro. This, is undermining the whole Eurozone stability today. If we have to be a union we need to accept sacrifices and help weaker countries. If we don’t want to do this the solution is simple, just don’t be a union and go your own way.  How long will they take to understand this concept?  

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