By now it is widely recognised that some form of euro break-up is on the cards. Yet what form? It may be that only one country leaves, with the rest continuing as now. But this prospect seems unlikely to me. Although Greece is an extreme case, Portugal, Italy, Ireland and Spain are all shaky.
Alternatively, there could be a complete break-up, with all current member states returning to national currencies. This also seems unlikely, not least because there is still a strong desire in key countries to preserve the single currency idea.
The optimal reconfiguration would probably involve the retention of a northern monetary union centred on Germany.
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