A wonderfully encapsulating statement regarding European scenario planning. Creating an entirely new structure of governance for a continent that has historically speaking been one of the most violent neighborhoods on the planet without any contingency preparations. What possible conclusion can an observer derive from this?
Full article here
What was conceived as a club for Europe’s strongest economies was expanded for political reasons, leaving the currency union with minimal powers to police deficit spending and no safety net for dealing with countries, like Greece, that veer toward default.
“There was no discussion of that at all, of a crisis mechanism,” said Niels Thygesen, a retired Copenhagen University economics professor who served on the 1989 group led by European Commission President Jacques Delors that mapped out the path to the euro. “It was believed that if countries adhered more or less to prudent budgetary policies, that would not or could not happen.”