Douglas Carswell's Blog

Here we go. ERM all over again

See this ominous spike in the cost of Italian government borrowing? 

It shows you the kind of "stability" monetary union has produced for Europe.

Yet even now Europe's sheep-like political elite seem incapable of considering the alternatives.  They read from their communiques and recycle one another's clichés rather than actually think.

Imagine if instead of more bailout-and-borrow, Britain and others had spent the past two years promoting a policy of decouple and default, as this blog has repeatedly called for?  Imagine if we had helped re-establish new currencies in some member states?  

The IMF, Bank of England and others might have been able to pay to solve the problem by supporting the new fledgling currencies.  Instead we have paid to make the problem worse.   

Last week, our own Treasury team was telling us that we must continue to prop up this monetary disaster at any price.  Didn't a Tory Treasury team once say much the same about quitting ERM?

This is not just a failure of the Euro.  Or a disaster for millions of hard working people across Europe.  It is a disastrous failure of leadership by Europe's governing class.

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