Ben Chu: Welcome to the hotel eurozone
Outlook The single currency becomes more like the Hotel California with each passing every year.
Since 2010, Germany's Bundesbank has been resisting every attempt to ease monetary conditions in the single currency to help struggling member states on the periphery. The Bundesbank has also been insisting that official bailouts must be tied to deflationary fiscal packages. And if those countries aren't willing to gulp down that austerity medicine? Well, auf wiedersehen.
But the Bundesbank president, Jens Weidmann, modified his rhetoric this week and warned in an interview of "grave consequences" for any country that leaves the eurozone. The single currency, he said, is not "some sort of club which you can easily quit and then quickly sign up to again". So, as The Eagles sang: you can check out anytime you like, but you can never leave.
Mr Weidmann's correct that leaving the single currency would be "grave". However, life inside the eurozone remains pretty darn grave too, notwithstanding the latests surveys pointing to an expansion of activity for the bloc.
But those signs of recovery might explain Mr Weidmann's new line. Once the strugglers have wiped out their primary deficits (before interest payments) as all but one are forecast to do by the end of next year, they will be able to fund their expenditure from domestic taxes. That will make them less reliant on loans from neighbouring states and make an exit more feasible. That, just might, be check-out time for real.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 What happens to your body when you give up sugar?
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway in dense fog
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Turkish Airlines flight TK 726 crash-lands on Nepal runway in dense fog
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, photographer claims
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...