Countries can leave Euro – Euro Bank prepares for break up?

EUObserver has reported that a leading member of the Council of the European Central Bank, Christian Noyer has said that it is possible for member states to quit the eurozone. According to a published summary of the intervention, which took place on 29 June, Mr Noyer stated “It is possible for a country to leave the eurozone because states are sovereign”. It is the first time a top-level authority in the ECB has admitted publicly that European monetary union is reversible.

Considering the “irreversible” claims of past eurofederalist politicians this is a remarkable admission – and undoubtedly prepares the way for countries whose economies are being crucified by membership of the Euro to leave. Although Noyer said that leaving the Euro would endanger membership of the EU itself this is an absurdity – since several EU members have never been in the Euro at all.

20million unemployed in the EU, stagnation in France Germany and Italy – and all that as the western economies START entering a slow down! This is a potentially catastrophic situation and it is unlikely that the EU could stop a country like Italy leaving the Euro as social conditions deteriorate. The Italian Northern league party, which holds cabinet posts in Silvio Berlusconi’s government, has already called for a revival of the Italian lira as a “parallel currency” to the euro and is considering launching a petition to get a referendum on the issue.

Ironically it is Germany which could be under as much pressure as Italy. They have at least 5 million unemployed and an electorate which always rejected the Euro, just as they rejected the EU Constitution – although the Germans were not allowed to vote on either! indeed they have never been allowed to vote on ANY step towards the European Superstate!

As we predicted here long ago, just as Russia could no longer tolerate financing the failed Soviet Union so Germany, the biggest paymaster of the EU, could be the cause of the break up of the Euro and the EU’s supranational constitution. The debate about the British rebate, the massive expenditure on the CAP and French farmers is hotting up and could lead to just such a crisis in the next few years.

World wide economic pressures, the desire for a return to democracy and nationhood and the budget crisis mean the EU is in terminal decline. The CAP cannot last, the Euro cannot last and the EU cannot last in its present constitutional form. Who knows which straw will break the Union’s back?