Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market

The problems with a single currency in Europe are neither temporary nor curable. Any persistent defence of the euro will result in a long‐lasting recession and high unemployment in countries using fiscal austerity to pursue ‘internal devaluation’. It may lead to a revival of populist and nationalist movements, political collapse and disorderly eurozone break‐up. This article argues for a controlled segmentation of the eurozone via the exit of the most competitive countries and an agreement on a new European currency coordination system.