Could The Euro Ever Collapse?

Posted by Allison on 16 May 2011, 11:43

Well of course it could. Furthermore, while plenty of people are hoping it won’t, there are many more hoping it will take a permanent nosedive from which it would never recover.

The British people are arguably rather anti-Euro at the moment. Some of us are no doubt pro-Euro and pro-Europe, but the majority seem to fall on the other side of the argument. When it comes to the Euro a lot of people are forever watching to see how it performs against other currencies, and to see whether it comes out on top or takes a pummelling.

If only we could see into the future to see whether the single currency is still around at some point further on from now. We could look a year ahead, two years, five years or more. Whenever we decided to look it would be seriously interesting to see whether it was still there, still the currency of choice for much of Europe.

The recession certainly painted the Euro in a very different light from its early glory days. It’s no wonder those in charge of the change brought in the currency when everything was going okay. In prosperous times it’s easier to introduce a new currency, but as soon as times turn bad, well – we’ve seen what can happen then.

Of course it’s not just the currency that is struggling here. It’s the fact that it is used by so many different and diverse countries, all of whom have to go along with the same framework that the Eurozone has brought with it. We can see it doesn’t work – this much is certain from the range of results that some countries have had. Ireland, Greece and Portugal all have their problems at the moment – problems they may well not have had if they hadn’t joined the Euro in the first place.

Time will tell whether we still have this currency in the future. It has a 100% failure rate of single currencies to look back on, as they have always failed back in history. Perhaps today will be different – but then again, perhaps not.