One Man's View of the World

by Lee Kuan Yew

The European Central Bank becomes the Federal Reserve, and instead of different finance ministers, you have one to supervise the budgets of all the eurozone countries. This will be a move towards what European Union enthusiasts call an “ever closer union” and will cause the eurozone to look more and more like the United States. Will this happen? Will electorates willingly hand over a significant part of their nations’ budgetary powers to a central authority and trust that authority to make decisions on taxing and spending that are fair to each nation and at the same time beneficial to the eurozone as a whole? It is a remote possibility and I frankly do not see it happening. But if it does happen, it would probably be the best outcome on balance for the rest of the world. The outcome that is more likely but less desirable is a break-up – a return to separate currencies. It will be painful and confusing for all involved.