The Euro and Europe
Europe’s recent history does not point to an optimistic answer. The euro — itself a product of European integration — arose from the geopolitical tensions of the Cold War’s end. Unified Germany needed to be restrained and committed to the EU, so its fellow member states decided to hand it the keys to European monetary policy while giving up their ability to undercut Germany’s exports with currency depreciation. But nobody — starting with Germany and France — stuck to the rules laid out by the Stability and Growth Pact, a set of fiscal policy principles of low government debt and deficit that were supposed to lead to economic synchronization.
Translation: getting elected trumps good policy.