Will the Euro hold together?
Its nominal effective exchange rate has declined 6% from a December 3rd 2009 figure of 114.74 to 107.53 as of March 5th 2010.
However, compare this with the index figure for October 25th 2000 which stood at 81.09, which is almost 25% lower than todays figure.
A further fall in the Euro would help the exports of Germany and France, but would probably do little to solve Greece's problems?
The issue is likely not to be one of finance, but one of social cohesion. At what point will the Greeks decide that the Euro straightjacket is going to cause too much damage to their society... And then want out?
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