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Weaker economies should be allowed to leave the Euro

Thursday August 11th, 2011

In response to George Osborne’s statement on the Eurozone and UK’s recovery, Dr Eamonn Butler, Director of the Adam Smith Institute, said that greater fiscal integration in the Eurozone ‘may be the only way to keep the Euro together’.

He said: “But few people in Europe, apart from its leaders, actually want to be part of a tax and welfare union. It would be better to let the weaker economies leave the Euro. Unfortunately the Euro is a political project rather than an economic one. But you cannot defy economic reality forever. It is bound to split, and Britain should be trying to make sure that happens in a measured way rather than as another crisis. And we should be urging that European governments need to do much more to balance their books and get out of debt – which is the whole reason why markets have ceased to trust governments and central bankers.”

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