Wednesday, June 08, 2016

Makes you think.

Now, here is an interesting comment.

“There are two fundamental divisions of the EU:  There’s the British view — that it’s a super free-trade zone, that it’s a destination.  Whereas the Germany-France view is that it’s a means to something else — to an ever closer union.  These are fundamentally two very different views on what the EU is about. 

If the referendum [results in the U.K. remaining in the EU], we don’t resolve these different views.  It means we are going to have tensions over and over again, because they are pursuing two different objectives, within one institutional agreement. 

So, ironically, over the longer term, an exit may actually solve one of the basic inconsistencies of the European Union.”

His argument is that Brexit essentially secures the future of the EU, at short-term volatility cost. Some rogue euro sceptic?  Nope. 

Mohamed El-Erian is the Chief Economic Adviser to Allianz.  They are one seriously big player being the world’s largest insurance and financial services group.  Incidentally, they are also the largest company in the EU.

Somehow I think he knows what he is talking about.  

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