[QODLink]
Talk to Al Jazeera
Markus Kerber: "One size cannot fit all"
A strong critic of the euro explains why he thinks the currency union is doomed to fail.
Last Modified: 24 Dec 2011 11:55

More than 480bn, that is how much the the European Central Bank (ECB) loaned to banks last week, more money than many had been expecting. It has eased the immediate liquidity crunch in Europe, and compelled stock markets back upwards - at least initially. But does this mean the crisis is over?

Markus Kerber, a professor at Technology University Berlin, has long been a critic of the euro and the European Central Bank. He filed an unsuccessful law suit to stop German participation in efforts to bail out weaker economies.

He says at the heart of the problem facing Europe is that different countries have different abilities to compete. He says the euro is assuming one currency will fit all, instead it is preventing free markets from functioning normally and is therefore doomed to fail.

But not only that, he also says there are more serious problems on the horizon, especially French debt waiting to hit the markets. In the end what is at stake is momentous, Kerber says: the ability of European nations to uphold their sovereignty, democracy and rule of law.

Talk to Al Jazeera caught up with Professor Kerber in Berlin to get a better understanding of his point of view. Is the euro doomed to fail?

"The problems with the eurozone are fundamentally industrial; fundamentally concerned with the spread of competitiveness. If you look at the development of the last five years there is a great and a growing spread of competitiveness between the northern countries and southern countries. So you have to find a solution to that problem. If we didn't have a euro most of these countries would simply devaluate, in order to find the time to re-debt their economies. Now they are imprisoned in a currency which hinders them to debt, and which dictates a policy which is: one size has to fit all. And one size in such a situation, cannot fit all, because the euro is too expensive for Portugal and too cheap for Germany."

Markus Kerber, Technology University, Berlin

 

 
Talk to Al Jazeera airs each week at the following times GMT: Saturday: 0430; Sunday: 0830 and 1930; Monday 1430.

Click here for more on Talk to Al Jazeera
Source:
Al Jazeera
Topics in this article
People
City
Organisation
Featured on Al Jazeera
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Nearly half of Canadians have suffered inappropriate advances on the job - and the political arena is no exception.
Featured
Women's rights activists are demanding change after Hanna Lalango, 16, was gang-raped on a bus and left for dead.
Buried in Sweden's northern forest, Sorsele has welcomed many unaccompanied kids who help stabilise a town exodus.
A look at the changing face of North Korea, three years after the death of 'Dear Leader'.
While some fear a Muslim backlash after café killings, solidarity instead appears to be the order of the day.
Victims spared by the deadly disease are reporting blindness and other unexpected post-Ebola health issues.