Reproduced from the BBC Newsnight live blog with permission.
James Clayton, Newsnight political producer.
John Redwood thinks all you need to illustrate the problems of the Euro are two banknotes – one €20 and one £20 note.
First of all look at the British £20 note
* The Queen represents the British Government
*There is a statement from the Bank of England: “I promise to pay the bearer on demand the sum of twenty pounds”
* It is signed by the Chief Cashier of the Bank of England
* It has a picture of… the Bank of England
* It has a logo of… the Bank of England
In short – this is a pretty unequivocal IOU. It’s an explicit “promise to pay” from the Bank of England, assured by the British Government.
Now take a look at the €20
What does this note actually mean?
* The gothic windows are not real, they don’t exist. They’re a symbol of “an artistic period” of European architecture
* The flag on the note is the EU flag – despite nine countries within the EU having nothing to do with the Euro
* There is a signature, but it’s not explained who it is or what their role is
* There is no explanation as to what his note actually means for the owner
* There is only one reference to the European Central Bank on both sides of the note
Redwood argues that this tells you all you need to know about how the Eurozone works. The Euro notes are unclear, ungrounded and do not adequately represent the governments that back the ECB.