Jacques Delors, former head of the European Commission and key instigator of the euro, has come out in the press
Jacques Delors
stating in a recent Daily Telegraph interview “It (the euro) was flawed from the beginning.” Damning words, and ones that don’t particularly help the dire situation the euro is currently in. He told the British newspaper, “That the lack of central powers to co-ordinate economic policies allowed some members to run up unsustainable debt.” This echoes the same concern that Britain initially had, feeling that the lack of centralized control, or more specifically a state, would lead to imbalances and fundamental problems – essentially an unmanageable, ungovernable mess.
This interview comes at yet another crucial turning point in eurozone negotiations. Germany’s Angela Merkel, in typical Teutonic form, is working on a structured set of terms to “impose discipline” on members and France’s Sarkozy has “called for EU treaty changes,” according to the BBC. If this seems like the confused flailing of a drowning man, Jacques Delors could, apparently, see it coming.
The most pertinent analytical point that the former EC head raised was the notion that the debt crisis was simply the lack of intervention from finance ministers – perhaps not wanting to ‘rock the boat’ or laziness – in facing problems that were clearly evident; He said, “they turned a blind eye to the fundamental weaknesses and imbalances of member states’ economies…the finance ministers did not want to see anything disagreeable which they would be forced to deal with.” Ah, the luxury of hindsight wisdom. Regardless, Europe is in this mess, and must quickly aim to resolve or dissolve the euro, the dithering will only prolong the problems.
