"The center-left governments now in charge in Europe weren't the ones who put together this deal," reminds Baumohl. "Politicians won't be able to deal with unemployment by cutting interest rates anymore that's now the job of the European Central Bank, which has to fit one monetary policy to 11 different countries. It's going to be very frustrating." If the euro works for Europe attracting investment, increasing efficiency look for a South American currency, or even an Asian currency, a decade or two down the road. But if this deal gets torn up over political squabbling, says Baumohl, "it'll be like World War III." Or a marriage on the rocks.
Euro-Phoria
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EUROPE: The euro made its trading debut Monday in true honeymoon fashion: lots of ceremony and no problems. In trading from Asia to Europe to Wall Street, the world's new currency heavyweight rose steadily against the U.S. dollar and delivered, for one day at least, on its promise of European prosperity by sparking market rallies in Germany and France. But TIME senior economics reporter Bernard Baumohl says Europe's new union faces some rocky days ahead.