“Greece bailout: What’s the future of the euro?” no Christian Science Monitor
What are likely to be the long-term consequences of the crisis?
Some predict a growing clamor – particularly from Paris and Berlin – for more mutual scrutiny of member states’ budgets and perhaps more oversight by the European Commission, the EU’s executive entity. That would further alienate “euroskeptic” opponents of deeper European integration, such as British Conservatives hoping to take over the reins in Britain, currently one of 11 EU states that have not adopted the euro.
Inevitably, voices warning that the breakup of the euro is over the horizon are growing louder.
Also gaining ground in some quarters is the case for the creation of a new currency bloc with Germany at its core and strong, mainly northern states, floating around it.
“This would restore balance in the [European Monetary Union, or eurozone], but with pretty disastrous consequences for citizens of the southern European countries, since they are likely to go through massive devaluations first and then have to sort out fiscal policy anyway,” said Robert Hancké, a monetary union and European expert at the London School of Economics. “In addition, financial markets are likely to pick off weak countries during that process.”