Does the Euro need political union to make it work?


Charles Stanley’s Global Strategist, the RT Hon John Redwood will be speaking at a public economics lecture on 13th November at All Souls College in Oxford, addressing the question, ‘Can you have a successful currency union without a political union?’

How much will it cost to save Greece? How much money should be transferred from rich to poor areas in the Eurozone? What can we learn from the experiences of the sterling currency union and the German currency union of the 1990s? Don’t they show the need for very large transfers of income around currency zones?  Will the Euro result in a political union to provide stronger financial backing for the young currency? How can the UK live alongside the Eurozone as it develops more political integration?

These important topical questions will be the subject of a lecture by John Redwood on Friday 13th November. John Redwood is the Global Strategist for Charles Stanley. The lecture will be hosted by All Souls College, High Street Oxford at 4pm and is open to members of the public.

The lecture will demonstrate the extent of the additional public spending in Wales, Northern Ireland and other parts of the sterling union compared to the higher income areas in the South and East of England, and the substantial tax revenues raised in London and the South East to support the UK as a whole.  It will ask why Germany saw the need for large transfers to help East Germany following the merger of the Deutschmark with the ostmark, but is negative about similar transfers to Greece or Cyprus or other struggling parts of the Euro area. 

The lecture will cover a much wider canvass than the recent Radio 4 Analysis programme which John Redwood produced with the BBC on currency unions, including substantial material on the finances of the sterling union.