Could it be that the creation of the euro was a mistake?

The goals of its architects — summarised in the 1989 Delors Report as free movement of goods, capital, services and labour — seemed laudable and historically compelling. France’s President Mitterrand and Germany’s Chancellor Kohl felt that a single currency would enhance Europe’s role in the world monetary system and turn the continent into a truly unified market. European leaders also believed that economic cooperation and political integration would reduce the likelihood of a repetition of the destructive wars of the 20th century.

In theory, an integrated fiscal system could shift resources from rich to depressed regions, substituting for the forfeiture of national monetary control. Banking union and fiscal union required the establishment of new political institutions to provide accountability. This, thought the architects of the euro zone, would promote political integration. However, most