Support for the euro and European Union are on the wane and it’s best visualized as a trilemma, according to, Kevin O’Rourke of Trinity College Dublin.
He explains the region’s crisis as a decline in faith in the euro and eurozone and a shift back to the nation state.
When viewed as a trilemma, it is a battle between the Nation State, domestic politics, and the desire for more European integration. The battle grounds are fiscal policy and economic competitiveness.
Right now, power is shifting to support domestic political interests, which supports the nation state over European integration.
If we take into consideration Dylan Grice’s earlier comments, it appears the forces of nationalism are going to continue to grow, and halt the forces of further integration. Over time, those forces may grow so strong as to return power to the nation state from the EMU, and that could mean the euro’s head.
[credit provider=”INET” url=”http://ineteconomics.org/net/video/playlist/conference/bretton-woods/P”]