ALARMIST - Economist Nouriel Roubini plans end of euro zone in five years (FT)
Nouriel Roubini is one of the (rare) economists to have predicted the global economic and financial crisis of 2008. Since this fact of arms, his positions are particularly listened. The last of them, expressed Monday in the Financial Times, is enough to thrill decision makers in the euro area.
According to him, the tensions on the debts of the members "weakest" of the eurozone could cause the explosion of the monetary union. “The Economic and Monetary Union has never fulfilled the conditions for an 'optimal monetary zone',” he explains, pointing to the economic and competitiveness differences between member countries, as well as excessively disparate fiscal policies.
Instead of devoting themselves to these necessary "structural reforms", the Europeans have allowed the differences to widen and the debt crisis now threatens the countries of the "periphery". In the absence of a "federal centralization" of income - which would mean that "German taxes also pay the debts of the most fragile countries" - the only way to restore competitiveness and bring back growth would be an exit euro, accompanied by a massive depreciation.
This scenario, "inconceivable today", could well be inevitable in five years, concludes the economist.
http://bigbrowser.blog.lemonde.fr/2011/ ... nq-ans-ft/
Owl!! The hardest is finally still before us ...