Was Thatcher prophetic on the European financial crisis? Was the the First Euroskeptic?
Yet her doubts about a “European superstate” and the common currency ring true today, nearly a quarter of a century after she resigned. She correctly predicted in her memoirs that Germany’s historical fears about inflation would lead to slow-growth policies that would deepen the problems of the euro zone’s weaker, less efficient economies, which could no longer rely on devaluation to solve their problems.Mrs. Thatcher’s prescription for Britain in the 1980s — faith in market forces, willingness to impose short-term austerity in the service of long-term prosperity, and skepticism or even hostility to the fiscal and social costs of the welfare state — prefigured some of the policies Germany and European regulators are still recommending, wrongly in the view of many economists, for the struggling Southern European countries