Will Italy destroy the Euro?

A new pamphlet from CER is available today. WILL THE EUROZONE CRACK? by Simon Tilford, September 2006 Europeans often refer to Economic and Monetary Union and enlargement as the EU’s two greatest successes. However, the basis for a sustainable currency union is not in place. Unless the members rapidly boost their reform efforts, and unless economic growth across the eurozone accelerates, EMU faces a bleak future. What happens in Italy will be critical. If Italy fails to improve its competitiveness, it will eventually have to leave the eurozone. This could force other countries to quit the currency union and potentially threaten the EU’s single market. Simon Tilford is head of the business unit at the Centre for European Reform. It may be ordered from this link.