The Euro sovereign debt virus continues to spread across Europe with Spain’s ten year yield bouncing around the dreaded 7% level and Cyprus becoming the 5th Eurozone member to request bailout funds from its Eurozone partners. Even though the formation of a Greek coalition government appeared to have kicked the proverbial can a little further down the road once again, it now seems largely an irrelevance with the main focus being on the far more significant economy of Spain with the next in line being Italy, one of the original founding members of the EU.
The consensus appears to be firming up now that the energy required to keep kicking that can is waning and that certainly Greece, and then likely others, will have to – or be forced to – withdraw from the Euro. Whatever the future for Greece, Spain, Italy and others, we thought now a pertinent moment to reflect on just why we have this currency union to which so many aspired, and indeed aspire, to join.
A recent video post by GenevaRoadShow.TV compiled a quick, high-level overview summary montage that conveys the importance, and more critically the complications, of this currency’s tumultuous journey into existence. The post compiled some poignant clips from a recent BBC broadcast on that takes us back to the beginning, and Winston Churchill’s vision of a United States of Europe speech in Zurich in 1946.
‘The Great Euro Crash with Robert Peston‘ first aired in the UK as a full one hour BBC broadcast on Thursday, 17 May 2012. As interesting and relevant viewing for anyone, as pointed out in this short video, it is of particular note as it all started way before many of us were even born. So, just where did the Euro come from, and why? 1946 until the present day - in less than five minutes…