Europe's economic and monetary union near unworkable

Vientiane

DURING a panel discussion on April 3 in Vientiane on growth in the Asian economy, I asked Tarisa Watanagase, a former governor of the Bank of Thailand, what she thought of the future of Europe's economic and monetary union. Dr Watanagase, who was governor in 2006-10 and previously helped clear up the 1997-98 Asian financial crisis in Thailand, answered without demur. "It will not be a happy ending."

Three decades ago in Asia, she said, countries such as Thailand were able to emerge from the turmoil within a year, with currency devaluation a major part of the adjustment - an option not available in Europe's fixed exchange rate system. "That's very unfortunate when you're in a crisis."