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A Clinical Diagnosis Of The European Tragedy

Interviewer: We must stand together, because otherwise Europe has little chance against emerging giants like China and India.

Jean-Claude Juncker: We [Europe] are small, we are becoming weaker, we are also demographically weaker, and the only solution for the next 30 years will be that we as Europeans come increasingly closer together. We are few in number; if we stop integration, we will lose economic power, and when we no longer have this common currency, we will have absolutely no political significance. The Europeans are dwarfs. We must show the world something giant, and that’s the euro.
---Jean-Claude Juncker, president of the Euro Group, interview June 8th, 2012 (Luxembourg Government News)

For students of postwar European history, it should not come as a big surprise to learn that the rationale for European monetary union is political and not economic. The economic arguments were invented to justify the grand political scheme: One continent, one currency, one government, one state.

Europe, especially France, did not enjoy the spectacle of America's postwar hegemony, only made more galling by the collapse of the rival superpower. The US (with Britain) created the entire architecture of the postwar world: UN, NATO, IMF, IBRD, GATT/WTO, etc. The governance structure of NATO, the IMF and the World Bank are fashioned such that the US has effective control.