Save Europe: Split the Euro

May 15 (Bloomberg) -- On the eve of the American Civil War,Abraham Lincoln famously said that “a house divided cannotstand.” Today, the European Union -- committed for decades tothe quest for “ever closer union” -- must confront anagonizing truth. Lincoln’s maxim must be inverted. For the EU tosurvive, the euro must divide.

Between the Treaty of Rome in 1957 and the Single EuropeanAct in 1986, Europe’s governments brought about the one greatpeaceful revolution the continent has seen in its long andtroubled history. The creation of a single European currencywould build on this remarkable success. It was the next vitalstep to greater unity and prosperity. The economic crisis insouthern Europe shows that the euro system, at least in itscurrent form, has instead become a mortal threat to both.