We haven’t heard much from former Prime Minister Gordon Brown since he left office after the General Election this year. But he has come into the news again in recent days owing to his prophetic comments about the European single currency.
Even if you do not have a particular interest in the fate of the Euro or indeed in Gordon Brown, you cannot fail to have sat up and taken notice of his comments. According to various reports he has stated that he senses “in the first few months of 2011, we have got a major crisis in the Euro area.”
Some would say the crisis is already there, but it would appear that Mr Brown is commenting on the seriousness of the situation getting a lot worse. Recent events in the Eurozone have seen once prosperous Ireland having to agree to a bailout from Europe because of the mess it is in financially. But this is not a stand out event – other countries are also in trouble. It would seem as if the idea of having one rule for everyone and one currency for everyone is starting to come unstuck and unpicked at the seams.
Mr Brown said that three areas were responsible for the current troubles in the Euro area. Perhaps the most concerning one of these was the single currency itself. He pointed out the “one size fits all interest rate” and the fact that while it might suit some countries it certainly doesn’t suit all of them. This destability seems to be increasing and there is no end in sight to what could happen.
Gordon Brown may not have been a popular Prime Minister but his comments recently have certainly shone a brutal and honest light on the situation the Eurozone now finds itself in. When times were good the currency was strong and so were the member countries. But now those times are gone the fragility of the area has definitely been shown up in a very harsh light.
It remains to be seen whether the first few months of 2011 really do bring home the events that Gordon Brown is claiming will occur. But at the moment it is very difficult not to agree with him and to speculate how long it will take before the Euro is no more. It might have been a nice idea at the time, but it all seems a long time ago now.