Greece crisis: What now for the euro project?

The BBC compiled a good overview of various expert’s opinions about the euro’s future.

I would agree with Professor Iain Begg, Professor Charles Wyplosz and Holger Schmieding: The euro will survive, as this crisis is creating the political will and pressure “to further political and economic integration in Europe”.

One point that I would like to add to the discussion: other than the US, Europe as a whole is in equilibrium with the rest of the world. From that point of view, the European problem relates to its internal disequilibrium which can be resolved by improving Europe’s political and fiscal union – an ambitious but achieveable goal. The USA is facing a much harder problem: its external disequilibrium with the rest of the world. The Triffin dilemma suggests that this problem can only be resolved if the dollar would give up its role as the dominant key currency. Which in turn would make it harder for the US to finance its trade deficit. A vicious cycle, as it seems.

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