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ByGeorge Soros
Published: December 15 2010 04:48 | Last updated: December 15 2010 04:48
The architects of the euro knew that it was incomplete when they designed it. The currency had a common central bank but no common treasury "“ unavoidable given that the Maastricht treaty was meant to bring about monetary union without political union. The authorities were confident, however, that if and when the euro ran into a crisis they would be able to overcome it. After all, that is how the European Union was created, taking one step at a time, knowing full well that additional steps would be required.
With hindsight, however, one can identify other deficiencies in the euro of which its architects were unaware. A currency supposed to bring convergence has produced divergences instead. That is because the founders did not realise that imbalances may emerge not only in the public sphere but also in the private sector.
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