Tuesday, February 9, 2010

Was Uncle Milton right about the EU?

Milton Friedman famously predicted that the European Union would not survive its first recession. His prediction seems to be growing more likely:
That is precisely what euro skeptics have said from the beginning -- that a common currency can't work in the long run without a common economic and financial policy. The member countries' governments ignored these objections, unready to give up a further aspect of their national sovereignty.

Now politicians are facing a difficult decision: Should they continue as they have, thus potentially undermining the euro's ability to function? Or should they yield a portion of their national sovereignty to Brussels?

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