The End of the Euro?

    Ein Stern des Eurozeichen leuchtet am Freitag, 21. September 2007, in Frankfurt am Main vor der Europaeischen Zentralbank. Der Hoehenflug des Euros geht rasant weiter. Am Freitag durchbrach die Gemeinschaftswaehrung voruebergehend auch die Linie von 1,41 Dollar. Der Dollar fiel auch gegen andere Waehrungen ab und erreichte erstmals seit 31 Jahren eine Paritaet mit dem kanadischen Dollar. (AP Photo/Bernd Kammerer)   --- The Euro sign is seen in front of the European Central Bank in Frankfurt, central Germany, on Friday, Sept. 21, 2007. The euro kept up its unassailable upward march on Friday, breaking through US$1.41, and setting a new high, a record analysts said is likely to be broken again and again. (AP Photo/Bernd Kammerer)

    Bernd Kammerer / AP Photo

    The combination of political uncertainty and economic maladies could mean that the handwriting’s on the wall for the euro, Peter Boone and Simon Johnson write at Bloomberg. Unemployment rates are at record highs in Greece, Italy, Spain, Portugal, and Ireland. Budget deficits and high government debt drag down national economies. And all of these problems are “compounded by five years of complete political denial,” according to Boone and Johnson. “Is there any hope for the euro dream?” they ask. An answer may lie in the European Central Bank, but even that may be fraught with peril. As for austerity, those plans have been “huge social and political failures, removing one more hope for saving the euro area.”

    Read it at Bloomberg