Alan Greenspan Says Europe Needs Political Union

The single currency can only survive if the 17-country euro zone becomes a political union, the former head of the U.S. Federal Reserve told a German newspaper this weekend.

“The euro can be saved only by a political union,” Alan Greenspan said in an interview with “Welt am Sonntag” Sunday. “I do not believe that a common economic and monetary space can operate in the long term if it consists of 17 countries with 17 different social systems.”

The 87-year old, who was head of the Fed from 1987 until 2006, said that political union was the only way that the economic region was not going to break up, such were the economic differences between the member states.

During the economic crisis, he said, “the interest rates on government bonds of the southern states soared, while they remained low and stable for Germany and some other countries such as the Netherlands, Austria and Finland.”

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.