Thursday, June 07, 2012

Ten More Reasons the Euro is Dead

Alex Barker has a list, but doesn't think the obstacles are insuperable. Call me skeptical.

Some issues to bear in mind when considering whether a European banking union is a realistic possibility. The difficulties highlighted are not impossible to overcome. But it would be a wrench.

1. Germans don’t like strong EU supervision of their banks. Berlin is fond of federal EU solutions. But it is even more keen on running its own banks. The political links — especially between the state and regional savings banks — are particularly strong in Germany. To date Berlin has proved one of the biggest opponents of giving serious clout to existing pan-EU regulators.

Read the link if you want the rest. Via Tyler Cowen.