The Euro Has Been a Complete Disaster: Bootle

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June 10 (Bloomberg) –- Capital Economics Managing Director Roger Bootle discusses his book “The Trouble With Europe” and what he thinks IS the trouble with Europe with Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Welcome back to "countdown." it is 7:22 here in london.

Roger is here.

Here it is, "the trouble with europe." thank you for coming in to talk about it.

Is the eu and the euro unsustainable in its current form?

The eu and the euro are quite different things.

The euro, i have argued for some time, is unsustainable.

So far, i have been wrong.

But give me time.

I think i will get there in the end.

The eu is a much broader thing.

What i argue in the book is that i think it is fundamentally badly structured right from the beginning.

Of course, the euro derives from that.

This idea that you have to bind these countries closer together.

The euro has been a complete disaster.

Why do we feel the need to decide whether the euro has been a disaster or not right now without giving it more time?

Many european leaders talk about how it is still a work in progress three they say they are taking action to fix some of the infrastructure, the physical requirements.

Other currency unions exist with big divergences.

They may not be perfect either, but why do we feel the need to condemn it after just this many years?

Well, it is not that young, you know.

You had more time than me, i suspect, but if we see a breakup, it is going to be very soon.

It has been catastrophic for the peripheral countries.

The collapse in gdp increase of 25%. this is the order of magnitude that happened in america and germany in the 1930's. the diversions between european performance and performance of countries in the world.

It is possible, in 20 or 30 years, the euro will be doing perfectly well.

I do not want to wait that long.

What about the eu and the u.k.'s relationship with it?

If david cameron does not get what he wants, do you really believe that it is better for britain not to be within the eu?

Let's see what it is that he has got and he has not got.

If he does not get very much, then yes, the answer i would give is it would be better for britain to be outside the eu.

A lot of people talk nonsense about the cost of leaving.

In essence, most trade between britain and the eu would continue.

The barriers would be very small.

We would have a good chance of agreeing with a free-trade agreement with the eu.

We just would not have this flood of regulation.

They might not be minded with a free-trade agreement with the u.k. if they just snubbed them and left.

It is possible.

But they are striking free-trade agreements with other countries around the world.

We are the eu's biggest trading partner, believe it or not, bigger than the u.s. i think you would find lots of german carmakers would the putting enormous pressure on the eu authorities to do something about it.

How do the parliamentary elections in europe changed the political landscape?

Well, it is too early to tell, what you would think that they would be putting more pressure on leaders to make some moves in the direction of the eurosceptics.

Maybe that is what is happening with juncker at the moment, a sign that that is happening.

It would not go well to have a federalist in this important post.

We will have to see.

France is the fascinating country where they got such a huge vote three -- a huge vote.

Yet he is anything but a champion is -- a champion of free market, anglo-saxon capitalism.

Do you think it can be reformed, europe?

I certainly do not think we should ditch it.

But i would want to try --

This text has been automatically generated. It may not be 100% accurate.


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