How to save the euro
Written by Simon Tilford, 14 September 2010
Current efforts to reform the eurozone are set to fall dramatically short of what is required to secure the future of the single currency. Poor economic growth prospects, rather than fiscal ill-discipline, lie at the heart of the currency union's problems. But the EU's inadequate policy response ignores this and risks condemning the eurozone to permanent crisis, with chronically weak growth across the bloc as a whole, and politically destabilising deflation in the struggling member-states. This threatens to create strains between north and south and between France and Germany, in the process damaging the chances of progress in other areas of EU business.