© Unbekannt
One of the phrases frequently written in economic circles in the United States (and, to a lesser degree, in Europe) is, "The euro is going to collapse." Those who repeat that phrase over and over again do not seem to know how the euro was established, by whom and for whose benefit. If they knew the history of the euro, they would have noticed that the major forces behind the euro have done very well and continue to do so. As long as they continue to benefit from the euro's existence, the euro will continue to exist.
Let's start with the euro's history and the major reason it was established. After the collapse of the Berlin Wall, it looked like East and West Germany could reunite and - as the Western German establishment wanted - become, once again, a united Germany. That possibility did not please democratic Europe. Twice in the 20th century, the majority of European countries had to go to war to stop the expansionist aims of a united Germany. The European governments were not pleased to see post-Nazi Germany reunited. President Franรงois Mitterrand of France even said ironically that, "I love Germany so much that I prefer to see two Germanys rather than one."
The only alternative these governments saw was to make sure the united Germany would not become an isolated country in front of everyone else. Germany had to become integrated into Europe. It had to become Europeanized. Mitterrand thought one way of doing this was to have the German currency, the mark, be replaced by a new European currency, the euro. This was thought to be a way of anchoring post-Nazi Germany to democratic Europe.
The German establishment, however, put forth conditions. One was to establish a financial authority, the European Central Bank (ECB), that would manage the euro and have as its only objective to keep inflation down. The ECB would be under the heavy influence of (that is, controlled by) the German Central Bank, the Bundesbank. The other condition was to establish the stability pact, which would impose financial discipline on member states of the eurozone. Their public deficits would have to remain lower than 3 percent of their gross domestic products (GDPs), even in moments of recession.
To understand why the other countries accepted these conditions, one has to understand that neoliberalism (which started with President Ronald Reagan in the United States and with Prime Minister Margaret Thatcher in the United Kingdom) was the dominant ideology in those countries. A major position within that neoliberal dogma was to reduce the role of the states as much as possible, encouraging private financing and de-emphasizing domestic demand as the way of stimulating the economy. In this view, the main motor of the economy should be the growth of exports. These are the roots of the problem - not of the euro, which is in good health - but of the welfare and well-being of the population in those countries.
Comment: Rational decision makers, one wonders what country is he referring to?
Iran has made clear on several occasions that it doesn't seek a nuclear weapon.