ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Uneven Standards for 'National Eligibility'

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Well before the Euro’s stunning repudiation by the Danish electorate as the grand unifying currency of the European Union it revealed all the degenerative symptoms that are clues to its endemic weakness. The foundation of money as the supreme commodity, and as a repository of value, hinges on national and international confidence. Today, that confidence has been shattered with the Euro tumbling into its deepest trough. The phases of its recovery and by what policy mechanisms it will rebound, and at what velocity, time alone will tell. What is at stake, however, is its very survival as a financial unit of account with its calamitous political reverberations; and its impact on international trade and financial flows. Its fall from grace was evidenced in its systematic devaluation against the Swiss franc, the yen, the dollar and other world currencies. Since its advent on January 1, 1999, it has sunk almost 28 per cent against the dollar. It now stands or rather wobbles at 85 US cents.

Less than two years after its emergence, and even before its anticipated introduction as coins and bank notes, the entire apparatus of finance capital, marketing and distribution networks are in a state of agonising suspense. Illustrative of its loss of confidence was that around 72 per cent of Germans, in a recent poll preceding the Danish referendum, were hostile to its existence. For the millions of Germans embracing this judgment this has meant the D-mark was a solid guarantee of monetary and social stability. The terrors of the Weimar inflation of the post-Versailles period has left its indelible bite marks on the psyche of the German soul.

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