Dueling Banjos today in RCW's afternoon edition: a Daily Mail op-ed says the Euro must end, while ex-Eurocrats counter that the Euro could be saved with further EU integration. The authors' biases are obvious enough, but what might be less obvious is that they don't actually disagree with each other.
Both articles present the separation of monetary and fiscal policy as the source of the Eurozone crisis, and they're right. If Greece and the rest of the PIIGS still had national currencies, they could mitigate the problems austerity is giving them through inflation. And if fiscal policy were at least partially elevated to the EU level, redistributive assistance to the PIIGS wouldn't be left to the caprice of national politics in Germany. Monetary integration without fiscal coordination has proved to be a dangerous half measure.
