Will the euro crash from Trump, a ‘madman on the loose’?
Flemish academic Paul De Grauwe has responded to the unenthusiastic comments about the euro made by Ted Malloch, the man tipped to become President Trump's ambassador to the EU.
Mr Malloch says that the common European currency could collapse within 18 months. Prof De Grauwe of the London School of Economics warns that President Trump forms a greater threat to the world economy and euro.
Prof De Grauwe tells VRT News that he has always believed that the euro is a fragile currency. He sees no reason to fear for an imminent collapse but concedes that “things can always happen.”
The Flemish academic sees Mr Trump and his cohorts as the greatest current threat to the euro and the entire world economy. After Mr Trump indicated that the US would take protectionist action and will question trade accords Prof De Grauwe is keen to label the new US president as a “madman on the loose”. Prof de Grauwe is worried that the new US president could unleash a trade war. A first step was the US withdrawal from the Trans-Pacific Partnership.
The Fleming accuses Ted Malloch of sowing the seeds of panic by suggesting the end of the euro could be close. He concedes that more budgetary co-operation between member states will be needed to safeguard the euro in future.
Prof De Grauwe has no immediate fears for the euro, especially as EU growth figures are on the mend. He is less optimistic about what could happen during a future recession.
Flandersnews.be / Expatica