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Jakarta Post

Euro crisis bleak future for ASEAN single currency

  • Putera Satria Sambijantoro

Jakarta   /   Wed, April 20 2011   /  08:00 am

Economists and policymakers in euro-adopter countries are experiencing stormy weather outside their office windows.

Early this month the Portuguese government declared its inability to pay its debts and requested financial assistance from the EU. After the economies of Greece and Ireland collapsed last year, Portugal is the third euro-adopter country that has failed to pay its debts and ask for a bailout.

Besides, it may not be the last nation to follow the path of Greece and Ireland, and quite a few analysts claimed that debt-laden economies, such as Spain, Italy, France and Belgium, could be the next dominoes to fall.

The single currency policy in euro was said to be a great idea at the beginning; but looking at how recent events have unfolded, some optimists have become skeptics: Is the euro responsible for recent Europe’s mess?

The best way to understan...