Controlled Dismantlement of the Eurozone: A Strategy to Save the European Union and the Single European Market


  • The first Polish version of the article has been available at and since 11 April 2012. The first English version entitled ‘Controlled Dismantlement of the Euro Area in Order to Preserve the European Union and Single European Market’ was published as a working paper in the series CASE Network Studies & Analyses (no. 441/2012) on the 22 June 2012. We would like to thank some people who contributed to this text. Krzysztof Błędowski, Marcin Gozdek, Kamil Kamiński and Agata Miśkowiec provided us with some data and analyses. All of them and also Mark Allen, Wojciech Arkuszewski, Sergiusz Kowalski, Adam Parfiniewicz, Jerzy Strzelecki and Cezary Wójcik, as well as Walter Krämer and two anonymous referees provided us with valuable comments and critical remarks, which in some cases were far off the views presented in the text. Teresa Siwicka supported us in the English editing. This article expresses the personal views of the authors.

Address for correspondence Stefan Kawalec, Capital Strategy, Jerozolimskie 65/79, 00-697, Warszawa, Poland. Tel.: +48 22 630 57 57; e-mail:


The problems with a single currency in Europe are neither temporary nor curable. Any persistent defence of the euro will result in a long-lasting recession and high unemployment in countries using fiscal austerity to pursue ‘internal devaluation’. It may lead to a revival of populist and nationalist movements, political collapse and disorderly eurozone break-up. This article argues for a controlled segmentation of the eurozone via the exit of the most competitive countries and an agreement on a new European currency coordination system.