Daniel Gros the German Director of the Brussels-based Center for European Policy Studies, and former economic adviser to the European Commission, believes that only determined action by EU governments that is strongly supported by their citizens will save the common currency. Gros published an article on Aljazeera titled ‘Democracy versus the eurozone‘ in which he states “The reality is that the larger member states are more equal than the others. Of course, this is not fair, but the EU’s inability to impose its view on democratic countries might actually sometimes be for the best, given that even the Commission is fallible. The broader message from the Greek and French elections is that the attempt to impose a benevolent creditors’ dictatorship is now being met by a debtors’ revolt. Financial markets have reacted as strongly as they have because investors recognise that the “sovereign” in sovereign debt is an electorate that can simply decide not to pay. This is already the case in Greece, but the fate of the euro will be decided in the larger, systemically important countries like Italy and Spain. Only determined action by their governments, supported by their citizens, will show that they merit unreserved support from the rest of the eurozone. At this point, nothing less can save the common currency.”


Inspired by Aljazeera ow.ly/bzDeO image source World Economic Forum ow.ly/bzD9E