Thursday, 17 June 2010

Euro Disintegration

Reading Dan Hannan's post and the wonderful metaphor from the comments below it - 'We all want to be good neighbours, but see no need to knock through the adjoining walls of our houses and marry into the family in order to be considered good neighbours' - I realise that Cameron needs to be a little more honest with European partners.

Britain's position on the Euro is unequivocal, widely understood and correct. But Cameron should - at least in private - now be preparing his European partners for life beyond the Euro. All those countries in a fiscal mess should be actively planning for life outside the Euro. Leadership means setting out the economic and political imperatives needed for a stable and prosperous Euro area, whilst supporting those unable to commit to the financial prerequisites. I also note that Iceland, Norway & Switzerland participate in the Schengen Area despite being non-EU member states.

The disintegration of Euroland is going to be complicated, expensive and very messy. But Cameron, as a relative outsider and leader of Europe's primary financial hub, should now be suggesting at a level of some impartiality, the various routes out of this problem.