Saving Europe: How National Politics Nearly Destroyed the Euro

The recent global financial crisis has left many casualties in its wake, including millions of jobs, record-high housing values, healthy pension funds, a sense of safety associated with state finance, and many longs-serving politicians and public officials who were shown the door. Monetary union in Europe was nearly another major casualty, putting the future of the euro in grave peril. Saving Europe reveals how the nexus of international economics and national politics pushed monetary union to the brink of extinction, how that disastrous development was avoided, and why the long-term viability of a common currency challenges politics as we know it. Carlo Bastasin, an Italy-based economist and prolific financial journalist, reveals what has happened behind the scenes in European capitals during the ongoing financial crisis, beginning in 2008 with the collapse of major financial institutions. He argues that the crisis in the euro-zone has a political origin in the abuses of national politics. Moreover, the crisis is reinforced even now by the obstinate defense of national prerogatives in politics and finance and by the lack of commitment for shared or supranational sovereignty. While the consensus view is that monetary union was a flawed project and must be amended, Bastasin shows that the failures have to do almost entirely with national opportunism—not only in Greece but everywhere, not least in Germany. Saving Europe is the first major book on these momentous developments and their likely ramifications. Bastasin’s compelling work is an engrossing historical chronicle, weaving moments of high drama with individual personalities on the world stage. Germany chancellor Angela Merkel, French president Nicolas Sarkozy, and British prime minister Gordon Brown play central roles. This is also a scholarly attempt to make larger sense of what happened—and what could happen next. Given the critical role and importance of Europe within the world economy as well as growing speculation that the euro might disappear, this is essential reading for anyone trying to grasp international economics. Just as important, it is a fascinating tale of people, personalities, and power. There is no other book like it