Abstract

European crisis arrived at the crossroad. The preservation of the Eurozone in its current shape and scale implies economic changes which are increasingly resented by nations on the Mediterranean littoral – those most affected by the crisis. Alternative policies of monetary and fiscal expansion threaten the EU members north of Alps by both devastating inflation and, given their demographics, the social justice and wellbeing. However, the restructuring of the Eurozone implies short to medium term undesirable consequences. This paper suggests that the introduction of the parallel currency alongside the Euro in most affected counties may be a solution which preserves the current scope and scale of the Eurozone, mitigates the impact of “southern” adjustment and reduces the Eurozone-wide impact of needed financial restructuring.

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