Re: Re: Why did Ireland bother? Don’t they have Trojan horses?


As far as I can see, there’s 2 possible paths to keep the Euro alive.

1) Internal devaluation. The periphery goes through several years worth of internal devaluation until spending is reduced and competitiveness levels increased. Germany remains dominant force within Europe.

2) Fiscal union and redistribution of wealth from the strong to the weak. Includes EuroBond and lots of wonderful new treaties. The economies of Europe are optimised for the poorest regions, as opposed to the strongest.

Can you spot the problems with either of these routes?

Are there other options?