Happy B’day Euro

Fourteen years ago today the Euro was “born” and boy has the currency seen it’s share of highs and lows. During this time it has grown 11 percent but it is way off its 2008 highs. So what does the future bring for this currency? It all depends on the resolution of the sovereign debt crisis and even with German Finance Minister Wolfgang Schaeuble said last week he thought the worst had passed, businessmen still keep a watchful eye on the zone’s financial progress.

The struggles of southern Europe have played a wicked role in the psychology of the markets with the ping pong volley of various austerity measures over the last couple of years. The future of the currency has been debated as the nations in the euro-zone all have different fiscal policies. The argument: if they are a fiscal union- why is there no unity amongst the 17 countries with their fiscal measures? One such person who sides with this arguement is Philippe Louis-Dreyfus President of Louis Dreyfus Armateaurs Group.

The following is an excerpt of Louis-Dreyfus which is under the copyright of Marine Money International

A strong European activist, Louis-Dreyfus, said he is very much in favor of “a Europe,” but he is not happy with its present structure. He was against the Maastricht Treaty, which he said opened Europe to too many countries and opened the frontiers to too many people and too many goods. “Europe for me should have not expanded so much. It’s one of our weaknesses. I was against the Euro, the currency, and I was proved wrong for many years,” he said. “I was against it because I didn’t believe you could get a common currency if you did not have a common economic policy. Which, today, at last eight or ten years after, I am right.”

Because of the various economic policies, Louis-Dreyfus said Europe is going in the wrong direction because nobody is speaking the same fiscal language. “I guess Europe will survive, but it will have to go to a stronger centralized banking system and imposing policy like an economic union on its members, which was not what the people originally had in mind,” he said. “So, I don’t know where Europe will go, but we are facing a very difficult situation today. I cannot give you any hint on what’s going to happen because I have no clue myself.”

Nevertheless, even with the headwinds facing Europe, he is still quite bullish– calling it “an amazing land of opportunity.”

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One response to “Happy B’day Euro

  1. Reblogged this on Dynasties of the Sea and commented:
    On this 14th anniversary of the Euro, Lori Ann LaRocco posts an excerpt from Dynasties of the Sea in which Philippe Louis-Dreyfus shares his thoughts on the currency.

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