The inception of the Euro and the evolving political and social philosophy of the nations it serves has been almost natural, an experiment in the growth of both, facing challenges as the journey has progressed, addressing the various crisis the best they knew how. It has been an interesting journey so far. God willing, it will continue further to unite the spirit of the European nations, and allow the Euro to successfully become a Reserve Currency. At the moment, of course, the Euro is in its infancy.
In retrospect, questions should have been asked : How could the Maastricht Treaty overlook the printing of the Euro, or the issuing of it? It seems the Euro Area, which was growing in number of member nations and consequently serving a bigger population, was consigned to try and manage on a 'limited budget'. It seems not to have occurred to the powers that be that as they enlisted more members, the size of the pool of capital should have automatically been allowed to grow. That fiscal adjustment to the collective balance sheet of the European Union nations should have been a natural, routine point.
Just imagine : First of all, East and West Germany combined, joining their currency and wealth pools to replace it with the Euro. Remember, they had BMWs in one country, Skodas in the other, now they were going to have similar values. Should the prices in West have been adjusted downwards, and perhaps not adjusted upwards for the East? Was there a middle ground?
When Greece turned all the Drachmas and Gold reserves over to Germany, what calculations were made to allocate them the Euro instead? Was there a scientific system of transferring value?
This is just some simplistic absurd arguments, but you get the point.
It seems the Union kept growing, with more nations surrendering their original monetary units and getting the Euro instead - and this was from the limited pool that was created in the first instance. (The Maastricht Treaty did not have any stipulation for printing or issuing more, and this was only recently looked at whereupon Mr Mario Draghi announced suitable modifications to that policy and authorized printing or issuance of more of the stuff.).
This is food for thought, and can only help in growing the Euro to a powerful, respectable Reserve Currency of the future, and the political and social unification of Europe as something that may be a cohesive, harmonious federation.
In the meantime, it seems the economic jargon utilized may have obfuscated the whole issue, as urgent issues were tackled with the most convenient solutions being thrown at the problems as they arose. Perhaps it may be best to accept that it cannot have been any other way?
Now with hindsight, and some scientific analysis (or even some inspired ideas), hopefully the Euro will grow stronger, the European Union nations feel they were each served equitably by the Euro, and allow the harmonious mingling of the nations combine and celebrate a culture that reflects the unity of all these people, the values they share and their aspirations for a secure, honourable and prosperous future for the E.U. and associated nations.
Certainly with the ECB stimulus in place, there ought to be growing strength and confidence in the future, a rosy future that could hasten the economic Recovery and perhaps take us all to Prosperity, which may be just around the corner.
As for the rest of the world, China and Russia are re-creating the new Silk Road, which should see economic development in a lot of the countries that lie across the route. Logically, there should be good numbers this year, regardless of who becomes President in the U.S. As for Brexit and the Article 50, it seems most probable that the United Kingdom will choose the options that bestow the greatest advantages to themselves. There is a jubilant atmosphere here in the U.K. that things will be more than okay, and we will get the best of the bargain. There seems there will be no lack of goodwill in the U.K. towards all the European nations, and shall continue trading with all these nations on the best terms under the current situation. Brexit will turn into a blessing in disguise, for the U.K. and her friends the other Euro Area and E.U. nations.
I would propose a toast : to the longevity of the Euro, and happy, harmonious times for the European Union and the United Kingdom.
Durudarshan H. Dadlani
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00:23 hours GMT 30th July 2016 London