Almost 20 years ago, two Christians from the Jubilee Centre pondered the possible consequences of the Euro:
Unfortunately, EMU [European Monetary Union] may well foster conflicts and increase nationalism among EU countries. If the system works well and an active fiscal policy compensates for the lack of an independent monetary policy, some countries will need to raise taxes in order to cool their economy even though the government is in strong surplus. Quite correctly, electorates will blame the system. However, if EMU fails, endemic unemployment will result in some countries due to an overvalued exchange rate for their needs and excessively high interest rates. Wage cuts in, or labour movements from, the countries thus affected seem unlikely, and the current treaty does not provide for fiscal transfers from a prospering country to a depressed one as a result of EMU. Hence, some countries will feel neglected in the interest rate setting process, and will demand restitution from the centre. To make matters worse, they could be having to cut spending and raise taxes in a recession to avoid being fined for an ‘excessive’ deficit, while having to bail out a collapsing banking system due to inappropriate interest rate levels.
If a country faces an unsustainable fiscal situation, it may be forced to threaten default on its debt or request help from other members. If a transfer or debt guarantee is granted, those populations in solvent countries may resent their taxes being used to bail out irresponsible governments elsewhere. If these payments have no democratic mandate, resentment of neighbouring countries within EMU may result.
— Paul Mills and Michael Schluter, Should Christians Support the Euro?, December 1998
The only thing they missed is that the bailed-out would also resent those who did the bailing…