Goldman's Jim O'Neill: Germany's Push For Fiscal Unity Could Shatter The Eurozone

Jim O'Neill

Forget Greece. If the Germans get their way, Portugal, Italy, Ireland, Spain and Finland may all consider quitting the euro, Goldman’s Jim O’Neill tells the Sunday Telegraph:

“The Germans want more fiscal unity and much tougher central observation – with the idea of a finance ministry. That will emerge for those that want to stay in this damn thing, or can stay in.

“With that caveat, it is tough to see all countries that joined wanting to live with that –including the one that is so troubled here [Greece]. If you wind the clock back, it was pretty obvious that economically probably only Germany, France and Benelux of the original joiners were the ones that were ideal for a monetary union.

“For [them] it is not a bad idea – these countries have always had some kind of tight fixing of exchange rates and are very intertwined. For all the rest that originally joined – Spain, Italy, Portugal, Ireland, Finland – it is actually questionable.”

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