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France Must Lead Breakup of Euro

May 16 (Bloomberg) -- France played a decisive role in shaping not only the euro system but the entire European project. This history has predisposed French leaders to the goal of preserving the euro at all costs. Those costs, as we explained in Part 1 of this article, have become quite insupportable. A new strategy is needed, and France’s role in shaping it will once again be pivotal.

France sits on the fault line between the euro system’s deficit and surplus countries. It runs a large and costly welfare system with high-quality public services, often referred to as the French model, founded on a deep and dearly held national consensus.