Protesters clash with riot police in Athens, May 4, 2010. Greece's government announced sweeping spending cuts worth 30 billion euros through 2012, in order to secure a vital rescue package of loans from the IMF and the 15 EU countries using the euro.
"The End of the Euro"
How the crisis in Greece could lead to the demise of Europe's most ambitious project.
Magazine or Newspaper Article, Newsweek
May 17, 2010
Author: Niall Ferguson, Member of the Board, Belfer Center for Science and International Affairs
Crisis--from the Greek "krisis," for a turning point in a disease--is one of many English words we owe to the ancient Athenians. Now their modern descendants are reminding us what it really means.
Just when it seemed safe to start using the word "recovery," a Greek crisis is threatening the world economy, and the very existence of the world's second-biggest currency.
The euro seemed like such a good idea just 10 years ago. Europe had already achieved remarkable levels of integration as a trading bloc, to say nothing of its consolidation as a legal community. Monetary union offered all kinds of alluring benefits. It would end forever the exchange-rate volatility that had bedeviled the continent since the breakdown of the Bretton Woods system of fixed rates in the 1970s. No more annoying and costly currency conversions for travelers and businesses. And greater price transparency would improve the flow of intra-European trade.
For more, go to: http://www.newsweek.com/id/237645
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