Prof. D. Ivanov: The recipe for the monetary union is flawed

"It is clear that the recipe for the creation of the monetary union and the Euro was mistaken, because a monetary union that combines economies which are so different in terms of structure and power cannot exist," said analyst Professor Dimitar Ivanov for BNR. According to him, political leaders Helmut Kohl and Francois Mitterrand had once hoped, when the agreement for the Euro was signed, that a convergence will be achieved in the coming years. Unfortunately, this convergence was not achieved. And Europe is now facing two alternatives. The first one includes an exit of the Euro and a return to national currencies, with an intermediate option for the use of the Euro as a common payment unit. The other option is for a more bound, more integrated, more federalist and more controlled union.

What British Prime Minister David Cameron suggested in his speech a few days ago, represents yet another alternative for Europe's development, Professor Ivanov said. The idea of Europe was different - it was of a Europe of the Regions, of citizens, and not a Europe of bureaucracy in which Brussels dictates to all national Governments what to do, a Europe, that takes away the national sovereignty of different countries' Parliaments. Cameron sees the EU as a flexible network of Member States, focused on the single European market, but each one chooses where to be included and where not. The British Prime Minister insists on a new treaty for Europe which will establish this new kind of relationships. He not only expresses the views of Euro-sceptics in Britain and those of his conservative party, but also those of many Member States.

Dimitar Ivanov believes that the Eurozone cannot continue to function in its current form. There is a temporary relief on financial markets, but it is due to the rescue injections of money, etc., but deep structural changes in the Eurozone are still a burden, Ivanov stressed. The question of Europe's road to a possible federal Europe is a "hot potato" in political, economic and social terms. Therefore, currently, nobody wants to mention that word, the analyst said.

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