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Quelle dommage!
France to Euro: You Were a Mistake

“All happy families are happy in the same way,” wrote Tolstoy, “but each unhappy family is unhappy in its own way.” In an interview in Le Figaro, Henri Guaino, longtime senior adviser to former French President Nicolas Sarkozy, gave a good account of exactly what kind of unhappy family Europe is these days. Discussing the perils of European monetary policy, Guiano made the following rather startling admission:

I don’t want to advocate leaving the euro, because that would present a huge risk to us, to Europe, and to the world. But I think that the euro was a mistake, that its management has been disastrous, its overvaluation is unsustainable, and that it would be reasonable to bring it to parity with the dollar.

Guaino went on to lament that the costs of a deflationary monetary policy would be passed on to households and businesses and questioned the ECB’s ability to implement policy effectively across Europe. He even suggested that the ECB remains largely oblivious to the instability of the banking sector and the euro itself. “Do not forget that monetary policy mistakes can destroy a society and even a civilization,” he warned.

Now, Guaino is a politician in a country with a very fluid political landscape, who has one eye on his party’s positioning for the European elections in May and the other on his own political legacy. But to the extent that his comments betray a whiff of sincerity, he is like a husband who says to his wife: “Look, honey, I’m not about to ask you for a divorce, because that would be terrible for the kids, but—just for the record—I want to say that marrying you was a mistake, and I mostly blame you for mucking the whole thing up.”

Oh, if only a currency could be dumped as easily as a French First Lady…

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  • Fat_Man

    Any honesty from a politician is to be applauded. Is there anyone in US politics who would be that honest about the failure of their policies?.

    • Corlyss

      Not in the last 3 administrations anyway.

      • ljgude

        And I think it is possible to rank those three – and it has been all downhill.

        • Corlyss

          You won’t get an argument from me.

          Boomers: synonymous with political failure domestic and foreign.

  • Corlyss

    Well, better late than never. He ought to go for the whole enchilada: The EU as presently configured and empowered was a monumental disastrous mistake on the order of the capitulation at Munich.

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