The EU should admit the strategic error of the euro

English2019. szept 25.GOVERNOR MATOLCSY100WORDS

One might regard the last 5 years as a catalogue of unexpected dramas (Tony Barber, Financial Times, 12 July 2019), from Brexit to labeling China as a systemic rival, from the migration crisis to the collapse of the U.S.-EU alliance.

Nevertheless, all these disruptive events are the results of the introduction of the euro, a rival global currency to the dollar. Indeed, the Eurozone remains half-built, with no banking union, no sizable budget, and no rules to leave the currency zone. It seems that the EU remains vulnerable to American warfare against the rival currency.

This means many “unexpected events” to come in the next 5 years time.

Governor Matolcsy, MNB, the central bank of Hungary

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