An Orderly EMU Break-Up, à la Française?

• How long will this last before the plug is pulled on the Eurozone? It is anybody’s guess. But I doubt the thing can last beyond 2012.
  –
  An orderly EMU break-up, à la Française 
  By Ambrose Evans-Pritchard, http://www.telegraph.co.uk/ 
  Salut souverainistes. For those wanting more details on the euro break-up plan drafted by French economists, here is the link to the L’Observatoire de L’Europe website.
  –
  A few extracts, loosely translated: “The obstinate determination of governments to take us by forced march deeper into the euro impasse can only lead to the general aggravation of the economic situation in Europe.”
  –
  “Even though our American and Chinese competitors have an interest in the survival of the single currency, the euro is condemned to an uncontrollable explosion sooner or late”. (A nice twist that one, inverting the false and widely believed conspiracy theory that the US is trying to destroy the euro.)
  –
  “National currencies should be recreated in each eurozone country”. There will be a short transition period of dual notes as old euros are stamped by country (‘U’ for France) until new francs etc are printed. (This is what happened when the Austro-Hungarian monetary union fell apart in 1919.)
  –
  The new exchange rates will be determined by a formula that takes into account the accumulated inflation differential and trade balances since the launch of EMU. The devaluations/revaluations will be set against a new unit of account reflecting the average weighting of the old euro (not anchored on the new D-Mark).
  –
  … for more click here!

end