The Socialist Spanish Prime Minister, Pedro Sànchez, while being a big fan of the European Union, has for many years complained about the way it actually works and has been calling for a shake up of the institution to make it leaner and meaner, and how the EU has functioned, or not, during the pandemic has further fuelled the debate.
Spain targets the EU
The EU has slapped billions of euros of recovery euros on the table
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The wishful collapse of the Euro has been anticipated for decades. Since it began, really (particularly by Britain, as trotted out every few weeks as "imminent" in the Sun/Daily Mail/Express ...for decades now). It's become a rather tired and useless reassurance now. Especially considering that today, the eurozone alone constitutes the world's 2nd largest economy, and if you include the handful of member states not adopting the Euro, it's the world's 2nd largest by a relatively small margin. Even without Britain. In fact, after the 2008 debt crisis, the EU briefly became the world's largest economy, outpacing the US by a small margin. But in reaction to 2008, the Euro's fault lines became abundantly clear, and steps were taken to centralise the management of the currency, away from individual member state central banks, and now the ECB has much firmer, if not complete control over it. As it should be. But it's also worth considering that today, the Euro has become world's 2nd most favoured reserve currency. That does rather indicate that while Britain or a handful of other spectator wannabies might still be holding out for a Euro collapse, it's fortunately, unlikely, and the confidence in that by more informed, politically unmotivated investors appear to be rather ubiquitous. Otherwise, it wouldn't be the 2nd most held reserve currency. There's always more adjusting to be done, but it seems that any collapse isn't really in the cards. It probably never was. And considering the implications of such a collapse on those who would wish it, they'd better hope it never comes true. The fallout would be nothing short of disastrous, yes even in the center of the universe. No worries though. It's just wishful thinking. It always has been.
The euro was cobbled together with rules designed to make the new currency the characteristics of the DMark. That delusion was shattered during the euro crisis. Allowing a lucky dip approach to national borrowing and debt will lead to Greece on steroids if interest rates rise and inflation let’s rip. The national variable could be a currency called say the euro Spain or euro Germany. Or maybe the peseta or dmark
Sanchez for sure would like to throw the rule book out of the window when it comes to Fiscal restraints but he should be very careful as this could result in unplayable debt , Inflation is already spiralling out of control and excessive borrowing or creation of wealth that is not payable will result in the currency being further devalued which makes it even more difficult for the next generation of Young people .