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Published: May 24 2010 20:45 | Last updated: May 24 2010 20:45
Binding former enemies together in a common currency was Europe's historic political achievement. Today those ties are being tested as never before. The euro is not yet on the verge of disintegration. But greater statesmanship is needed to stem the erosion of political support.
Monetary union was always as much a political as an economic project. So it is today. If the euro is under threat, it is not from economic challenges, whether sovereign defaults or a plummeting exchange rate. The euro has successfully buttressed the single market by eliminating currency volatility and competitive devaluations. The risks to its survival are political "“ and even those risks can be overstated. There are powerful forces holding the eurozone together: there is no way to expel a member; political leaders are still committed to staying in; and even if they wanted to, leaving would be costly.
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