Fareed zakaria gps on eu creation on new currency

Fareed Zakaria's GPS (Geopolitics, Security, Prosperity) show on CNN often features in-depth discussions on global issues, including economics and politics. Here's a summary of his show on the EU's creation of a new currency:

Episode: "The Euro's Uncertain Future" (aired on March 24, 2019)

Guests:

  1. Mario Draghi, former President of the European Central Bank (ECB)
  2. Klaus Regling, Managing Director of the European Stability Mechanism (ESM)

Summary:

Fareed Zakaria discussed the European Union's (EU) creation of the euro, the single currency used by 19 of the 28 EU member states. The guests, Mario Draghi and Klaus Regling, shared their insights on the euro's history, challenges, and future prospects.

Key points:

  1. The euro's creation: Zakaria asked Draghi about the euro's creation in 1999. Draghi explained that the euro was a response to the European Monetary System's (EMS) limitations, which led to currency fluctuations and economic instability. The euro aimed to create a single currency, promoting economic integration and stability.
  2. Challenges: Regling highlighted the euro's challenges, including the 2008 financial crisis, which exposed the eurozone's vulnerabilities. He noted that the crisis led to a loss of trust in the euro and the EU's ability to manage it.
  3. Eurozone's future: Draghi emphasized the need for the eurozone to address its structural issues, such as low inflation, low growth, and high unemployment. He suggested that the EU needs to focus on structural reforms, investment in human capital, and a more integrated economic policy.
  4. Brexit and the euro: Zakaria asked about the impact of Brexit on the euro. Regling noted that Brexit has created uncertainty, but the eurozone is more resilient than it was during the 2008 crisis. Draghi added that the eurozone needs to be prepared for any potential Brexit scenarios.
  5. New currency: Zakaria asked about the possibility of a new currency or a digital euro. Draghi mentioned that the ECB is exploring the concept of a digital euro, but it's still in its infancy. Regling noted that a new currency would require significant changes to the EU's economic and monetary policies.

Takeaways:

  1. The euro's creation was a response to the limitations of the European Monetary System.
  2. The eurozone faces structural challenges, including low inflation, low growth, and high unemployment.
  3. The EU needs to focus on structural reforms, investment in human capital, and a more integrated economic policy.
  4. Brexit has created uncertainty, but the eurozone is more resilient than it was during the 2008 crisis.
  5. The ECB is exploring the concept of a digital euro, but it's still in its early stages.

This episode provides valuable insights into the euro's history, challenges, and future prospects, as well as the EU's efforts to address its structural issues and maintain economic stability.