The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
OPINION

Single currency: Time to think the unthinkable

My optimism depends on the EU's single market surviving the demise of Emu.

Of course, senior EU politicians daren't even think about it. Most of them still see Europe's future in terms of the Maastricht treaty's objectives. But as I argued in this column last month, it's odds-on the timetable for European monetary union (Emu) will have to be put back. What happens to Europe then? Is it Armageddon, as German chancellor Helmut Kohl sometimes seems to suggest. I think not.


But my optimism depends on the EU's single market surviving the demise of Emu. The single market is the foundation of internal commerce, designed in the mid-1980s for completion in 1992. There are still many barriers, but they get smaller each year.


Supporters of a single currency say Emu is essential to the single market. True, big swings in real exchange rates in the EU would encourage business in strong-currency countries to press for import controls. But trade flows fairly freely between the US and Canada (and increasingly with Mexico), and these countries have separate currencies. There is a danger that frustrated fans of Maastricht might use the absence of a single currency as an excuse for weakening the single market, but there is no logical reason why they should do so.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree