“Eurozone as it currently stands is not immutable, or inevitably dying…”

If anyone is still listening to experts for remain, here’s one worth paying attention to before the drop… It’s Simon Wren-Lewis responding to the brilliantly written and honest outline by Ambrose Evans-Pritchard I covered in yesterday’s Report of why he’s for leaving:

The fact that democracy was overridden in Greece so cruelly was not the result of actions of unelected bureaucrats, but of elected finance ministers from the other union countries. One reason these finance ministers refused to write off any debt was because of pressure from their own electorates.

This exercise in raw political power worked because the Greek people wanted to stay in the Euro. The ‘bad equilibrium’ Evans-Pritchard talks about happens in part because of democracy. The lesson I would draw is that union governments should not lend money directly to other union governments, precisely because governments are democratic and so find it hard to accept write-offs.

He also points out that there is no pressing ‘need’ we can expect to get bombarded with nnow for the UK to pull out…

The Eurozone as it currently stands is not immutable, or inevitably dying, or some kind of monster that is bound to ensnare the UK or bring it down. If the Eurozone did become one of these things, we can always exercise our option to leave. In contrast, once we leave, it will be a long time before we can change our minds.


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