It would only be worth doing were the Seuro Central Bank (to) be prepared to be a lender of last resort for banks in the union and if sufficient monetary union was accepted by the members to allow for the creation of a Seuro Treasury and development bonds with liability shared by all member states. Full fiscal union would not be required, but it must be accepted that basic monetary policy must be directed according to the needs of all of the members, not just the largest. The effects of an interest rate that is too low for the needs of some members could be (partly) compensated by increased prudential regulation, for instance.

Proceeds from such bonds or money created by the SCB should primarily be used for projects that would both clearly be self liquidating and that would provide employment within the Seuro zone and it would have to be agreed that trade surpluses within the zone would have to be recycled through investment in deficit countries so as to produce balanced trade within the bloc.

Countries in the Seuro could agree to mutual policies that allow for the level of social solidarity that existed prior to the crisis, as they could maintain the value of their currency via the exchange rate mechanism. If all countries within the union agree to certain standards of wages and benefits and agree, if necessary, to protect their economies by both capital controls and tariffs they could, to a considerable degree, opt out of global wage arbitrage. Citizens, I believe, would gladly trade higher prices for some consumer goods for a higher degree of social cohesion and stability. Living wages, renewable energy and full employment instead of 'Always low prices'.

And the interests being advanced were obviously those of the elites considering that the first step was removal of controls on capital flows. This should have only followed implementation of effective prudential regulation and establishment of Euro Zone wide bank resolution policies financed by a Euro Zone wide source of funding.

None of these things exist currently in the Euro zone and the attitudes of Germany and the other elites for which Germany fronts seem to be: : Let it bleed!"    


"It is not necessary to have hope in order to persevere."