The future of the euro: Let's get real

After three years of recurrent crisis, what is the future of the euro? For some skeptical observers, mounting tensions in the euro zone are fast approaching a breaking point. Europe's daring monetary experiment, we are told, is doomed to end in spectacular failure. For others, by contrast, the outcome ultimately will be not less union but “more Europe” – an even tighter merger of national economic sovereignty. Tested by adversity, the euro will emerge more successful than ever. Who is right? The correct answer is: Neither. Skeptics are wrong because they underestimate Europe's deep political commitment to the euro's survival, in some form or other. Euro-enthusiasts are wrong because they overestimate the amount of “give” in Europe's domestic politics. The euro will neither fail nor succeed. Defective but defended, it will simply endure.