The Right Coast

May 19, 2004
Milton Friedman on the Euro
By Mike Rappaport

In an interview, Milton Friedman argues "that there is a strong possibility that the euro zone could collapse in the next few years because differences are accumulating between countries ... I'm not saying it is a certainty, just that it is a strong possibility". (Hat tip: Mahalanobis).

The article reporting the interview also states that

[Friedman's] main concern with the workings of the euro zone is that it is difficult to have an economic union between countries that have substantially different economies, cultures and languages.
He believes that these problems are set to mount with the entry of the ten new member states.
As for improving the economies of the EU countries, Friedman's recommendations are no surprise:

There is no doubt what the EU should do. Abolish your rules and regulations. Abolish your [high level of] spending. The European economy is too burdened with rules and regulations. There is nothing wrong with the basic strength of the individual countries. But they have burdened themselves with a range of rules that strangle their economies.