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Excluding the most recent addition to the euro area, let’s consider the original EU12. Across all advanced economies (34 of them), average annualised rate of real GDP per capita growth was 1.57%. Across the euro area 12 it was 0.727% – less than 1/2 of the average. Average for non-euro area 12 states was 2.126% or almost 3 times the euro area 12 average.
All of this translates into a massive gap between the euro area 12 (euro ‘growthology’ states that supported from the start the idea of ‘sustainable’ growth based on the EMU) and the rest of the advanced economies. In cumulative terms – over 2000-2014, EA12 states clocked growth of 11.674% in terms of their real GDP per capita. Over the same period of time, ex-EA12 advanced economies managed to grow on average by 40.01%.
Oh dear… even if you are not Italy or Cyprus (the latter made utterly insolvent by the EU inept ‘resolution’ of the Greek crisis and then promptly accused of causing this disaster upon itself – just to ad an insult to an injury), even if you are the ‘best in the class’ Ireland… within the euro, you are screwed.
So the key question is: where is the evidence that having a common currency results in better economic outcomes? Key answer is: nowhere.