FORMER PRESIDENT of the European Commission and one of the architects of the euro Jacques Delors has said that he believes the single currency was flawed from the very start.
However, Delors added that the problem wasn’t in the planning of the single currency, but in its execution and that concerns were raised early on about its potential weaknesses.
Speaking to Charles Moore of the Telegraph, Delors said that common economic polices founded on member states’ cooperation had to be introduced alongside the currency. Things were generally going well for the euro, he said, until the global credit crunch exposed the currency’s flaws.
The Frenchman added that he believes the currency can survive, but only if new structures are put in place to regain market confidence.
The publication of Delors’ comments comes as EU leaders prepare to meet for a major summit on 9 December.
Angela Merkel and Nicolas Sarkozy have already announced their intention to use the summit to present their arguments for greater fiscal consolidation within the eurozone, to a degree that could require EU Treaty changes. Sarkozy also took a pop at Ireland’s low corporation tax rate this week in a reference to “unfair competition” on tax.
Today, Sinn Féin TD Gerry Adams called on Enda Kenny to ‘don the green jersey’ and reject any further loss of fiscal powers in the move towards greater budgetary consolidation among member states. He also criticised ‘Merkozy’s’ proposals:
This is a mistake. The reality is that what is being proposed goes far beyond limited treaty change and envisages the loss of any remaining fiscal powers.
Fianna Fáil leader Micheál Martin wrote in an opinion piece in today’s Examiner that if the ECB and EU leaders do not agree policy changes to support the euro soon, the crisis will turn “into a catastrophe”.
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