Solidarity isn’t going well for the Eurozone especially when ex-German MEP Hans-Olaf Henkel has suggested the best solution would be for Italy to leave the Eurozone and go back to their currency, which he labelled the “new lira”. Mr Henkel was speaking in regards to the ever-widening splits within the EU, between North and South of the bloc.
Leader of the European People’s Party in the EU Parliament, Manfred Weber, is another to speak out wanting stricter controls to prevent countries like Italy and Spain from spending masses of EU money.
When Henkel was asked about comments made by George Soros in regards to EU having a duty to help Italy
The former MEP said: “I share Soros’ views on Italy but do not believe that there is any justification to show ‘financial solidarity with Italy because of the corona crisis’.
“What have Germans to do with the decisions taken by Italian politicians on their health system or the (very late) decisions on the lockdown in Lombardy?
“On average, the per capita wealth of Italians is way above the wealth of, for instance, Germans.
“So, before Italian politicians like Salvini or Conte or anybody claims money from citizens of other countries to mitigate the financial results of their decisions they should ask their wealthy people to show solidarity with their own people.
“Rather than letting Italian politicians borrow money from and at the risk of other countries, Germany should make a generous gift in exchange for Italy leaving the Eurozone and go back to their own currency (New Lira)!
“This way Italy’s Central Bank could devalue their currency to become competitive again, get the economy back on its (own) feet and prosper like Italy did before the euro.”
Mr Henkel, spoke about his desire for a “globalised, liberal and democratic world”, adding: “I know Soros from a meeting some years ago when we discussed the first euro crisis.
“At that time, I advocated the euro be split into a ‘Northern Euro’ and a ‘Euro for the South’, in each case the currency to reflect the different economic realities prevailing in, for example, Greece, Italy and France on the one hand and, for instance, in Austria, The Netherlands and Germany on the other.”
When talking about a possible solution labelled “Forever Bonds”, which are loans that would never be paid back, Mr Henkel said: “Soros’ idea of eternal European loans may work on a national basis as they did in the UK and the US in World War 1, but they would not work on a European level.
“Not only would we be confronted with the same moral hazard such as in the case of euro- or coronabonds, they would also be limited to the Eurozone hence create a new border within Europe.
“On one side are those with solidarity for Italy like Germany.
“On the other are those without like Denmark or Sweden or Poland, none of them being in the Eurozone.
“The real bombshell severely damaging the EU did already go off: Brexit!
“And here both Soros and I engaged heavily to avoid it.
“We both seem to agree that it is a disaster for both Britain and the EU.
“At the end, it might be more one for the EU than the UK.”