European Federalism – Can It Save the Euro?

from Wealth Cycles

As the Eurozone continues to be rocked by insolvent banks and floundering member nations, the turmoil still threatens to spill over into the rest of global economy, potentially pushing the faltering U.S. economy over the edge. German Chancellor Angela Merkel has proposed giving fiscal control over member nations to a centralized European government.

But can constitutional changes save the euro?

If you ask Merkel, the answer to this question is, almost certainly, yes. The German people, however, may have a different opinion. For many Germans, the need to repeatedly and consistently bail out less competitive and productive countries is a source of frustration. Following the path to greater controls, some fear, would result in Germany being held hostage by less disciplined economies. Regardless of what Merkel or the German people think, the primary question may be, can the necessary constitutional changes be made? Reuters:

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