Delors Created A Monster: The Euro Currency.

In economic downturn, any politician’s own trivial punch at the current state of the financial crisis can really knock confidence and cause extra downturn and problems.

But this has not phased Jacques Delors, one of the main architects of the single European currency, the Euro. Perhaps his honesty is the wake up call needed for future generations to never again be so flippant in their approach to international banking and funds. Perhaps it’s just a last jibe: an “I told you so” move that satisfies no one but himself.

However, the politician spoke out last week, stating “The Eurozone was flawed from the beginning”.

These are no doubt so bold and troubling words, at a time when the Eurozone has never looked so increasingly fragile. More countries turn to the Markozy central block for loans and bailout plans in an web of dependency that is surely already too far stretched. With other key members such as Spain and Italy, not thought of as in danger until quite recently, defaulting, there is a huge lack of faith in the value of the Euro, and its shared unit only serves to weaken those central powerhouses further.

Why the sudden backlash from Delors? As head of the European Commission from 1985 to 1995, he played a key role in the process that launched the euro and his comments effectively bring about questions of its true validity.

Delors claims that the single unit is not itself at fault, but “a fault in execution” by those who saw its implementation, who did not consider the economic backgrounds of certain member states. He continued by adding that “the finance ministers did not want to see anything disagreeable” and so instead of focussing on kinks of the single currency, they blindly promoted its benefits regardless.

Perhaps his most poignant move is to admit that those, like the British, who objected to the Euro certainly “had a point.”

In fact, a jump (or at least jump by today’s variable standard) was seen in the pound vs the Euro trading after this admission was made. Trade rendered £1 worth €1.17-€1.18. Not that this necessarily signals a growing strength in the pound, but rather a worse Euro. And Britain should remain wary of this, for its markets are key traders in the Euro currency. Our own economic growth is dependent on the fiscal balance sheets of Europe, even if we like to disagree.

On Friday, German Chancellor Angela Merkel said Europe was working towards setting up a "fiscal union", in an effort to impose budget discipline by members.

Yet, this surely would have been a logical launch issue? In some regards, it seems the lax approach to the Eurozone was deliberate, creating a free for all market, wherein all countries could reap the rewards. Bearing the consequence was never at the forefront of decision making.

And if the Euro should collapse, where will blame rest? With the French and German governments who prop and support and continue to make crucial decisions for the future of their economies? With the lesser countries who added to the imbalance of outgoing money? With the lack of a central union from the beginning?

Delors doesn’t have a definite answer, but sees all the moves of leading parties as “too little, too late”. But then is this the fault of Delors in his initial approach to the Euro itself? The history books will decide.