The Eurozone experiment is headed in the wrong direction. At its inception, the European Union and the notion of the shared currency were intended to accomplish three key objectives: to bring peace and prevent future war, to bring greater political unity and coordination, and to provide for economic integration including a greater standard of living. But after a promising start following the launch of the shared euro currency around the start of the new millennium, the experiment has fallen on increasingly difficult times in the years since the financial crisis. And as of late, we are now seeing growing resentments and financial imbalances leading to an increasing reversion back toward nationalist tendencies including calls for economic disintegration by those member states that are struggling most. All of this has placed the future fate of the euro currency in doubt. And as this uncertainty continues to build, it will have increasingly meaningful implications for investors and their capital allocation decisions.
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