If the economy of the European Union continues to hold on to the European currency, economic collapse can wait for it, said Vasily Koltashov, head of the Center for Political Economic Research at the New Society Institute.
The publication recalled that earlier European Commissioner for Economics Paolo Gentiloni said that the fight against the coronavirus pandemic could ultimately undermine the eurozone.
So, according to him, a deep and uneven recession, followed by an incomplete and also uneven recovery, “carries a real risk of worsening differences (between EU countries), which could undermine the single market and the eurozone”
“In the European Union, in the face of a new wave of global crisis, which also affected the north of the eurozone, rich and carefree, if we talk about banks, this problem has emerged: if the economy holds onto the euro, it will end,” said Vasily Koltashov.
According to him, European financiers and politicians want the euro to become a stronger international currency, and for economies this means “the deepest depression.”
“Imagine the situation in Italy: the pandemic has ended, and the tourist season has opened somewhere in August-September. People have options: to go either to Turkey, which is now cheaper due to the fall of the lira, or to Italy, which is expensive for travel companies “The same goes for food from Greece and Spain. They will lose markets. And the reason is that there is the euro,” the political scientist says.
Also, layoffs and a drop in living standards, as well as the transition of households to a more austerity regime, will hit the markets. In the context of a strong euro, the economies of the countries will begin to lose competitiveness due to high costs, the crisis caused by the pandemic takes competition to the limit, Vasily Koltashov concluded.