Euro exit should not be taboo, former ECB Chief Economist says | Fin24
 
  • Cadre Cover

    The ANC is planning to launch a funeral policy scheme for members and supporters.

  • VBS Collapse

    Ramaphosa has acknowledged South Africans' impatience to see justice done.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Euro exit should not be taboo, former ECB Chief Economist says

Dec 28 2018 16:08
Carolynn Look, Bloomberg

In the run-up to the euro’s 20th anniversary, one of its chief architects says the idea of quitting the common currency can no longer be off limits if a member flouts fiscal rules.

Otmar Issing, a founding member of the executive board of the European Central Bank and its former chief economist, told German newspaper Der Tagesspiegel that the euro "can only survive if all countries comply with their commitments".

"So far, there is no provision for a country’s exit from the monetary union - the accession is considered irreversible, ‘eternal’ so to speak," Issing said. "If conflicts become extreme because of the misconduct of one country, or even several countries, then the issue of withdrawal can no longer be taboo."

Issing highlighted Italy as a particular problem, saying it "not only violates commitments that the country has made with the European Commission, it also gloats about its deliberate breach of the rules."

Italy was involved in a standoff with Brussels in recent months over its proposed budget plans, although the European Commission decided against launching a disciplinary procedure after the country’s populist government pledged to rein in spending.

ecb  |  brexit
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...