David McWilliams: No one seems to have noticed there’s a monetary revolution under way
If the ECB re-establishes the old rules post-pandemic, a eurozone crisis will ensue
The ECB is in a bind. It is custodian of the euro and, it can’t walk back without undermining its currency. Photograph: iStock
There is a monetary revolution happening right under our noses. It is of such seismic proportions that the insurrection will force the EU to make a choice: either it accepts that in the future the ECB will continue to finance everything as it is doing right now, or it will try to go back to the past, reasserting Maastricht Treaty ideology on austerity and government deficits.
The latter option would mean the ECB will blow its own currency apart in a violent, self-inflicted crisis, which would see billions of euro leaving Italy, Spain and Greece in the biggest synchronised current account crisis the world has seen.