The economic divide between European Union nations risks destroying the euro, Pierre Moscovici has warned.
The European Commissioner for Economic and Financial affairs said that despite the benefits brought by low and stable interest rates, the common currency has not produced sufficient convergence across its 19 members.
“If the [economic] divergence continues to grow, the dismantling of the euro could become a fashionable idea, even a reality,” the former French economics minister said in an interview with Ouest France. “The euro is a powerful historic development, but it will be fragile if it is not capable of creating convergence.”
Moscovici repeated calls for countries to do more to close the gap, urging France to continue to reign in its budget deficit, despite election year pressures, while calling on Germany to invest more.
As well as economic threats, the commissioner highlighted the geo-political risks to Europe as part of an appeal for unity. “I see a Russia on the offensive; a powerful yet fragile China; Turkey at the crossroads; and a Great Britain wanting to distance itself from the European Union.”