“La debilidad del euro forma parte de la solución, porque aumenta la competitividad externa de Europa”, asegura Domingo Cavallo
"The weakness of the euro is part of the solution, because it increases Europe's external competitiveness," says Domingo Cavallo.
The former Minister of Economics of Argentina spoke about Ibero-America and the European crisis at the University of Navarra.
"Some people see the weakness of the euro as a problem, however, it is part of the solution. A weaker euro makes it possible to increase Europe's external competitiveness". This was stated by Domingo Cavallo, former Minister of Economics of Argentina, during the lecture "Iberoamérica centenaria y la crisis europea" at the University of Navarra.
He also advocated the unity of a single currency: "Under no circumstances should the Greeks think that the solution is to switch from the euro to the drachma. If they were to do so, they would suffer a crisis like the one in Argentina in 2002 and, most probably, they would infect several European countries". He added that "it is essential that Europe and the International Monetary Fund take extreme precautions so that over-indebted countries have enough time and external support to solve their problems in an orderly manner".
In reference letter to the economic status of Spain, the expert stated the following: "It is facing problems very similar to those we had in Argentina during the years 1999 and 2000, but it is well positioned to avoid a crisis like ours". In this sense, he pointed out that the solution depends on a joint work : "Undoubtedly, the central government has to make an important fiscal effort, but, as we are seeing, the autonomous regions and municipalities also have to do so".
Need for more European control in subject fiscal
Finally, the former minister pointed out that, in order to avoid a repetition of this subject crisis in the future, "Europe will have to implement a much more effective system of coordination and supervision of nations, with measures that should involve, for example, a greater relinquishment of sovereignty by the countries in subject fiscal".
Domingo Cavallo was Minister of Economics of Argentina from 1991 to 1996 and later, in 2001. In 1999 he was candidate presidential candidate representing Acción por la República, a party he founded, and with which he won the third majority. He is currently Chairman and CEO of DFC Associates LLC and honorary president of the Fundación Mediterránea, whose high school of research he created and directed between 1977 and 1987. He is also a corresponding member of the Royal Academy of Moral and Political Sciences of the Kingdom of Spain and a member of the group of the Thirty.
He is the author of the books Volver a crecer ( 1984), El desafío federal ( 1986), Economics en tiempos de crisis (1989), La Argentina que pudo ser ( 1989), El peso de la verdad ( 1997), Pasión por crear ( 2001) and Estanflación ( 2008).
This lecture, financed by the Ministry of Foreign Affairs and Cooperation, was part of the activities organized within the Thematic Year on Latin America of the School of Philosophy and Letters, in partnership with the high school business and Humanism of the University of Navarra.