America with its low inflation, low unemployment and adequate growth was their shining model. The EU's creators believed that a major historical reason for America's success was that it was a union of united states. They saw the EU as a united states of Europe. They also knew that there was a 19th century precedent for European unity. Yet since January 1 the euro has been going down and down.
High unemployment remains.
Right wing political forces driven by ultra-nationalist ideologies are growing. And instead of being a shining region of peace it sees an ugly war going on in its southeastern extremities. The Wall Street Journal of June 7 pointed to three conventional reasons for the euro's slide. First that America's fast growth and high interest rates were sucking in European capital. Second that by letting Italy get away with budget-breaking the EU leaders were endangering the entire euro system.