What would happen if the euro collapsed? What would really happen? Poland’s foreign minister, Radek Sikorski, has given a speech in Berlin warning that the catastrophic fallout from such a disaster could be far worse than anyone is so far anticipating. And he called upon Germany in particular to do whatever it takes to save the euro and the eurozone.
Making references to the collapsed of the former Yugoslavia, Radek Sikorski is clearly mindful of the cultural and social breakdowns that can occur when unions collapse. He also warned that the problems of the eurozone are largely down to overconfidence, and to the willingness of all countries – even the core members – to break the terms of the Stability and Growth Pact whenever they felt the need.
Sikorski’s speech is being hailed as a dose of rational thinking into the heart of a debate that is lumbering from one crisis to the next. He positioned Germany as the only country that can truly safeguard the euro’s future, and he warned Germany that the costs of this effort would be dwarfed by the costs of failure. You can find key extracts from the speech here, and it’s worth a read. Let’s hope decision-makers in Germany are reading it too.