Former Clinton Treasury Secretary Larry Summers told CNBC on Wednesday that breaking up the euro zone would be a “serious mistake” but the single currency has not lived up to the hype.
The architects of the euro failed to realize that participating countries needed to be tied closer together, he said on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.
The monetary union needed to be associated with “much greater cooperation in fiscal policy … financial regulation … in standing behind banks,” the former Obama advisor said. “They let the politics trump the economics and they’re paying the price for that now.”
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