EU must redouble efforts to restore fiscal responsibility and break up the euro zone

Preparations must be made for the orderly exit of a number of countries from the euro zone

Commenting on the news that the euro zone has fallen back into recession, Prof Philip Booth, Editorial Director of the Institute of Economic Affairs, said:
 


"Today's news that the euro zone is in recession will be met by a chorus of voices suggesting that the most highly indebted governments must spend and borrow more. This is entirely the wrong response and also ignores the most important policy options.
 


"Firstly, the euro is flawed as a currency area. Preparations must be made for the orderly exit of a number of countries.
 


"In addition, the EU has long-term structural problems which must be addressed. Only 20% of 60-64 year olds work in most southern EU countries. This is a symptom of the high government spending, taxes and regulation that are at the root of the EU's problems. Growth will not return unless there is radical structural reform."
 


Notes to editors

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