In search of reality

The euro, in short, has provided currency stability but has done little to promote growth, jobs or reform. That is a long way from branding the currency a complete failure. But it is clear that what matters most is the “real” side of the economy (growth, jobs, markets), not the nominal indicator of stability (inflation, budget deficits) that are used to decide both whether countries are ready to join, and how they are doing once they are in.

A key lesson is that flexible economies, such as Ireland’s and Britain’s, thrive, whether in or out of the euro. Inflexible ones can claw back lost competitiveness even inside the euro-but this takes a long time, and can come at a high price because they must keep growth in unit labour costs below average for years. Germany has done this. Italy and Portugal now face the same challenge, but without the German tradition of belt-tightening.

For countries now anxious to join the single currency, however, economic consideration hardly matters. They wanted to join the EU to show they were normal countries and now want to join the euro to show they are good Europeans. But being a good European can come at a cost – and it is not clear that all of the aspirants either understand this or are ready to pay.

Vocabulary:

performance	показатели
true believers	зд. ярые сторонники (введения евро)
think-tank	научно-исследовательский институт; группа экспертов или специалистов
unit labour costs	удельные затраты на оплату труда
belt-tightening	режим жёсткой экономии

TRANSLATION NOTES:

… which have especially negotiated opt-outs – которые особо оговорили возможность неприсоединения к «зоне евро»

tests of readiness to enter the euro – критерии готовности к вступлению в Европейский Экономический и валютный союз

budgetary austerity – низкий уровень дефицита госбюджета

to provide a monetary anchor – обеспечивать фиксированный валютный курс (служить «якорем» для валютной системы)

the end of the exchange-rate risk – отсутствие риска, связанного с изменением валютного курса

to bring economic cycles into line – сблизить динамику деловых циклов (синхронизировать).

but even short of this… – но, даже если этого не удастся достичь …

…have shown greater fiscal restraint than … – (про)демонстрировали большую приверженность жёсткой налогово-бюджетной политике, чем…

«Europe. Economic and Monetary Union» Topics for discussion

1. The EU: benefits of the single market and the single currency.

2. Four convergence criteria as means of bringing the European economies closer together.

3. Full economic and monetary union spells the end of a country’s right to determine its own economic policy.

4. The single currency may lead to regional conflict, not economic efficiency.

5. The creation of the euro is to be the biggest change in the world monetary arrangements.