The final destination is clear: a deepened economic union which manifests the partial political union our currency de facto already represents. The most important outcome of last night is that leaders showed their commitment to move the economic and monetary union to a new stage.
In a crisis the costs imposed by the destruction of savings and the contraction of credit, with the economies directly involved bearing the brunt, are much greater than the benefits reaped in the expansionary phase. The use of derivatives has increased the scope for hedging, but it has also multiplied the volume of speculative positions.