The Euro, as I noted before, is soon to meet its most difficult test. Unlike the dollar, which relies only on the credit of the USA, such as it is, to back it up, the Euro relies on the member states. Britain is not required to adopt the Euro. Neither is Denmark. However, any new EU member will be required to eventually adopt it.
The late Milton Friedman gave dire warnings regarding the Euro. He prophecied that it would inevitably collapse. Whether or not this actually happens, it is certain that the economic problems of Greece, Portugual, Ireland, and Spain are not helping, especially the economic problems in Portugal and Greece. Recently, one of the most prestigious of all French banks, the famed Société Générale, predicted a collapse in the Euro followed by the inevitable break-up of the Eurozone. You can read that story by clicking here. Peter Oborne also had a piece pretty much lauding Prime Minister Gordon Brown’s keeping Britain out of the Eurozone. You can read his opinion here.
No matter what happens, Europe is in for some distinctly dicey times. But the opinion of the Société Générale is troubling. One hopes that the IMF won’t have to get involved.