Former Fed Chairman Paul Volcker has expressed concern that the European Union may break up after the Greek fiscal crisis that prompted an unprecedented bailout by the region’s members.
Bloomberg: “You have the great problem of a potential disintegration of the euro,” Volcker, 82, said in a speech in London today. “The essential element of discipline in economic policy and in fiscal policy that was hoped for” has “so far not been rewarded in some countries.”
“Will economic and financial distress finally be resolved by looking toward more integration in a closely integrated Europe, politically as well as economically?” Volcker said. “I do have my hopes, as a believer in the euro.”