The Euro's demise could lead to a better future

From Bruno S. Frey (Econ Prof. at Univ. of Zurich) via voxeu

The euro, the EU, and Europe are far from being identical. Some important countries are members of the EU but kept their own currency (such as the UK, Sweden, or Denmark). In contrast, there are some non-EU countries (such as Switzerland) that are nevertheless members of certain European accords – in particular the Schengen Agreement and the various treaties in the area of scientific research. With respect to culture, science, sports and – above all – the economy, countries like Norway or Switzerland are without any doubt an integral part of Europe. To identify the euro, the EU, and Europe as one, as many politicians like to do, is totally misleading.

[...] The individual countries in Europe will quickly form new treaties among themselves. Collaboration will be maintained in all those areas where it has worked well. Some countries will remain in a newly formed and smaller Eurozone, for which the appropriate treaties will be designed. A similar reconstitution will take place with respect to Schengen, which will then encompass different members. Only those countries that find it advantageous will join a new convention on the free movement of persons. In contrast, those nations that do not find such new treaties attractive, or that are not admitted to them by the other members, will not join.

[...] A new formation of European cooperation may well happen along these lines, in particular because the EU is already partly organized in functional units. It is most likely that all the present members of the EU will participate in a free trade area since this has proved to be very productive. On the other hand, the democratic deficit of the EU, which is epitomised by the Commission, will be counteracted. Similarly, the ever-growing bureaucratic apparatus in Brussels is likely to be substituted by more flexible institutions and more democratic decision-making mechanisms.

... A net of contracts of which each one serves a particular functional purpose is open to all countries at the border of Europe and beyond. Thus, for example, Turkey could participate in contracts with an economic orientation and would in that role certainly be welcomed by the other European nations. At the same time, it might be excluded from political contracts if the other European members feel that Turkey does not (yet) fulfil the necessary requirements with respect to human rights. This allows for blurred distinctions: Turkey would be part of Europe in some respects, but not in others. This exactly mirrors reality...

[...] A possible demise of the euro and the EU can be seen as a chance for the evolution of a better future Europe.

It really is an interesting point - make the relationships match reality, instead of trying to force-feed reality into matching the relationships.
The only flaw I see in this is the short-term pain associated with the collapse of the Euro - and its a big flaw.  The optimistic forecasts look at it as a Lehman-style events, and those are the optimistic ones mind you...