Up until now, the big question in Europe has been whether the euro bloc can afford to stay together. The financial cost of bailing out Spain, Italy or even France is what’s brought the existence of the Eurozone into question.
Yet over the weekend, Italian prime minister Mario Monti pointed out that it’s not simply money that now threatens the European project, but attitudes. Speaking to German magazine Der Spiegel, the technocrat warned of a “psychological dissolution of Europe,” as people in the Italian parliament and elsewhere become more anti-German, anti-euro and anti-European Union as the crisis drags on.
Point in case: this weekend, Silvio Berlusconi-owned Italian daily Il Giornale published “QUARTO REICH” (Fourth Reich) as its headline, with a picture of Angela Merkel performing a Nazi salute. We could ascribe this to the fact that the paper is Berlusconi-owned. The former Italian premier was booted out by the German chancellor after all, and so will gladly score points. Yet even so, such a headline would have been unthinkable before the crisis.
Meanwhile the euro has lost out on these reports this afternoon. They won’t deal a death blow to the currency, and should mean you get a better exchange rate if you buy euros. But nonetheless they’re something to think about. Should Europe advance with its project, when popular support is turning against it? How can the euro gain democratic legitimacy?
Get in touch
I do hope you’ve enjoyed this post.
To find out how this data has affected your foreign exchange transactions, call us on +44 (0) 1494 671800 or email firstname.lastname@example.org. You can also visit us at foreign exchange specialist Pure FX. We’d be delighted to help with your enquiry.