The Euro: A Common Currency or a Currency Board?

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  • Antón Costas
Antón Costas
Vol 21 (2012): Crisis in the Eurozone, Articles
DOI: https://doi.org/10.15304/rge.21.Extra.421
Submitted: 10-10-2012 Accepted: 10-10-2012
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Abstract

In this article we ask why in the process of the formation of the common currency thenecessary mechanisms were not incorporated in order to resolve crisis like this. Our hypothesisis that, contrary to what is often said, the euro has followed a model approaching that of the reforced“Currency Board” more than a common currency in the strict sense of the word. Secondlywe ask if the current eurozone could go beyond the currency board logic to transform in thecommon currency logic. In this sense we pose the question to what extend the current sovereigndebt crisis will end up being a integration crisis or on the contrary a disintegration crisis of theeuro. We try to identify the determining factors that can make cause one effect or another. Theconclusion is that a path towards a European common currency will be a hard and uncertainone. We sustain that the advance towards a economic government of the euro needs a newmomentum. It won’t come from the present austerity plans. We think the reconstruction of theEuropean project needs a new solidarity pact between all European countries. The integration ofthe youths must be the common objective to drive us a new momentum for the European politicalproject.

Keywords:

Euro, Crisis of the euro, Crisis of 2008, Currency board, European integration
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