It was a great pleasure to join former Austrian Chancellor, Wolfgang Schussel and former Romanian Prime Minister, Adrian Nastase to discuss Bulgaria's membership of the Eurozone, at an excellent conference organised by the CFA Society Bulgaria and the Association of Consuls in Sofia.
I made the point that almost a quarter of a century since its inception, the single currency has mirrored Europe's aspirations to play a key role on the global stage.
By 2009, the Euro's overall foreign exchange rate activity had risen from 18% to 25%, thus gaining considerable traction against the US Dollar as global reserve currency.
Nevertheless, ten years after the share of the Euro was down back to 20% and it is still there now.
In a way what has been seen as the strength of the Euro, has proven to be also its main weakness. Most economists base their praise of the Euro on the fact that its management is independent of political power and is guaranteed by a strong institution that is not subject to political pressure. By contrast the Federal Reserve is seen as independent but subject to political "interference" of the sort that the ECB does not face. The Fed President has a counterpart in terms of the President and his Secretary of the Treasury. The ECB President faces nothing of the sort, at least directly.
The fact of life is that while political interference in technical banking and economic matters undoubtedly faces diminishing returns, but constructive dialogue very definitely yields returns.
Thus, for the Euro to achieve a dominant international status in line with the effective economic strength of the Eurozone, there needs to be an evolution of the underlying political entity of which it is the currency of.
The Euro not achieving the aim of serving as our international currency means that Europeans are limiting their sovereignty.
In essence, we have got the economics of the Euro mostly right but not its geopolitics and strategic aspects.
Chief Executive Officer at Ozo Group
1wanother step in the right direction for Maltese Football 👏 well done to all the team