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Love Thy Neighbour, Keep Thy Money

As long as the powerhouses of Europe prefer austerity over economic solidarity, we must remain pessimistic about the future of the continental union.

Sixteen years ago, the Italian economist and Harvard Professor Alberto Alesina forecasted that the Euro would not help to achieve a “political union in Europe”. To the contrary, Alesina wrote, "with all probability, contrasts between European countries would increase together with the tendency to coordinate monetary, fiscal and other policies. Forcing countries with different cultures and traditions to uniform their policies […] is a useless and potentially very dangerous operation”.