June 04, 2005

Dump the Euro?

We should have figured that the rejection of the EU constitution by both France and the Netherlands would inspire some re-thinking of the whole united Europe enterprise.

Italy should consider leaving the single currency and reintroducing the lira, Welfare Minister Roberto Maroni said in a newspaper interview on Friday.

Maroni, a member of the euro-skeptical Northern League party, told the Repubblica daily Italy should hold a referendum to decide whether to return to the lira, at least temporarily.

"Italy Minister Says Should Study Leaving Euro-Paper" [via Scared Monkeys]

UPDATE: Kevin at Lakeshore Laments thinks duming the Euro "would be disastrous for European economic recovery." He also thinks "Multiple currencies create more headaches and more hassle when shipping between nations - especially when doing it over a continent like Europe." But in today's highly digitized age aren't exchange rates easily figured with just a few clicks of the keyboard?

UPDATE II: James Joyner doesn't think it wise for Italy to dump the euro.

While I've long been a Euroskeptic, the idea of a European free trade zone has always made sense and a common currency is just a logical extension of that.

"Italian Minister Calls for Lira’s Return"