The Elites Should Sweat for the Euro

Left and right, liberals and protectionists, investment bankers and economists, political scientists and constitutional lawyers, all have one thing in common with the citizens of both the donor and debtor countries: They want to see the European project ended.

Can we look at the project from another perspective for a moment? Imagine that the euro is an American project. How would American innovators, project managers and other participants in the undertaking respond to such a broadside of criticism?

Have you ever taken a look at what’s on a dollar bill? “In God we trust.” You would think that the words, “In the euro we distrust” were imprinted on the euro note. Or consider our attitude towards other symbols of identity. How does an American stand when his flag is hoisted or an American hymn is sung? With his hand on his heart. Do we stand up? Do we sing along? Our identity is marked by a critical distance. If Americans fail at something, they check it off and begin the work with fresh courage, with optimism renewed. We believe optimism is only for the childish and the unenlightened.

What about referendums?

If the euro were an American project, U.S. firms who benefited from the market expansion and profited from reduced costs would publicly defend the currency. The architects of the monetary union would publicly signal their support. Scholars and institutions who pointed out the weaknesses of the first run would, as a part of the political brain trust, come up with concrete proposals for reform. The opposition would very carefully consider whether a project that expresses the greatness of America could be thrown in the trash so easily.

And us? Many representatives of the German economy, in particular the Organization of German Family Businesses, are singing a swan song for the euro. 250 economists signed a manifesto that sharply criticized the rescue euro. Politicians of all stripes — on the lookout for cheap votes — are taking the same line. There are those on the left, the liberals around Frank Schäffler, the Seehofers and many free voters; and there are those especially loud and longstanding critics on the radical right.

However, the euro is in the same league as the dollar, in the same way that Airbus is in the same league as Boeing. This fruitful competition, which for the foreseeable future cannot be provided by anyone else on the globe, is very worthy of preservation. For Europe, for America, for the world. It would be worth the elites’ sweat to recreate an environment where the common European currency, the euro, can be a comprehensive and sustainable success.

Steps should be taken toward establishing the United States of Europe with a constitution like the one in Switzerland — with its four languages and ethnic groups — which has fiscally powerful cantons and strong political and cultural communities, but a real parliament and a real president in Bern. And maybe we Europeans can soon politically mature like the Swiss and successfully adopt the referendum.