It is a good idea that the DPR is talking about the future of the euro ‘right now, in a calm moment’. ‘The current geopolitical situation makes noise generation very expensive,’ said macro economist Arnoud Boot. There is still much to be discussed, he thought.

Ahead of the discussion in the DPR, De Nederlandsche Bank and Statistics Netherlands said that the euro does not always bring countries closer together. Currencies have also caused divergences in the European Union.

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“The euro as a pure economic element has yet to lead to convergence, but that is a necessity for a union like the European Union,” said Boot. “The euro was introduced for political reasons.”

According to Boot, the unification of Germany (1990) became the root of import, in addition to France’s desire to end the dominance of the Deutsche Mark. ‘France wants accelerated introduction of the euro and also doesn’t want to become the weakest member of the eurozone. That’s why Southern European countries should join immediately.’ With the euro, the countries within the European Union have to draw closer together. ‘Hoping in vain’ thought Boot.

The root cause lies primarily with the national government, he thought. “Being part of the eurozone comes with a moral responsibility. You have to implement structural reforms that make you stronger.’ Too little has come out of it, says Boot.

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Spain, Portugal

‘You can discuss Spain and Portugal. Those countries are definitely making progress, but not enough.’ According to Boot, the question is whether ‘Brussels’ plays the right role. ‘As a monetary union, you actually have to have a political and fiscal union as well.’ And it needs more power for the European Commission.

Boot makes comparisons with the United States. “The state of California cannot and will not exit the dollar. If that happens, every state will be dragged down.” But EU countries are not ready for European political union. ‘The constant question within the EU is about the balance of power between national governments, the European Commission in Brussels with a lack of support and the European Central Bank being forced to ‘put it all together.’

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scrambled eggs

According to Boot, this is culturally and emotionally driven. ‘You have to see Europe as something you want to be,’ he said. An American returning home after a long standoff would say, regardless of the state in which he landed: ‘I am happy to be back in the greatest country in the world. A European would never say that.’

The euro is here and cannot be lost. ‘This is a scrambled eggsYou can’t make an omelet out of it. Here he is’. That’s why more attention should be paid to what binds us, thought Boot. And then it concerns mainly such pan-European issues as, for example, railroads and banking. ‘We are still faced with a financial system where the national bank has great influence over the national government. That’s asking for trouble. Where are the pan-European capital markets?’