The crisis in the eurozone was inevitable but has been accelerated, and worsened, by the banking collapse. It will not be solved easily or quickly. When it is, it may lead to a very different European Union.
The root of the present chaos can be traced back to bad politics taking precedence over sensible economics. At Maastricht, which I attended as prime minister, the assumption was that – before the euro was born – the economies of member states would converge: that is, operate at broadly the same levels of efficiency.
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