June 30, 2010: A report just days ago by "The Daily Telegraph" appears to confirm a scenario pictured earlier this year by Cardiff Business School's Dr Michael Arghyrou and John Tsoukalas from Nottingham University. Their report, titled "The Option of Last Resort: A Two-Currency EMU" was published in February and predicted that a two-tier euro system would likely be the only way to save the European Monetary System (EMS).

The Nottingham University academics envisioned a strong euro currency used in core countries such as Germany with a "weak" euro becoming the currency of those countries with weaker economies and traditionally higher inflation. The European Central Bank (ECB) would continue to control both currencies under the system.

Dr. Arghyrou said: "If every other plan fails, the two-currency proposal could ensure that the EMU is not destroyed by countries forced to abandon the euro and would help restore market faith in the European integration project. Faith needs to be restored in the euro and all parties are agreed that something needs to be done. Bailing out troubled countries might stretch the patience of taxpayers in core countries to breaking point. Asking the IMF to intervene will signal to the markets that the EMU cannot cope with its problems." According to Dr. Arghyrou, a two-currency solution would also mean that countries with strong economies like Germany would not have to bail out others.

The visionary two-tier euro system already has a name. France, Germany, Holland, Austria and Finland could be the intitial members of the "Nordic euro," with Greece, Spain, Italy, Portugal and even Ireland comprising the "Latin euro" to be used mainly by the current Eurozone's southernmost members in the Mediterranean region. According to "The Daily Telegraph," the two-tier euro arrangement is a second option for the future of the eurozone, with the first option being that the eurozone master the debt crisis in its current configuration.

The two-tier option for the euro would be an alternative to expelling weak members from the current euro zone. Expelling a country from the euro enflame a lack of confidence in the euro and push the whole euro region into a slump since European banks in the northern part of the euro zone are so exposed to debt in southern Europe. The consequences for the country expelled from the euro currency would be even more catastrophic.

The next big challenge for euro zone debt will come in September, when Spain has to refinance €80 billion of its foreign debt. According to an EU official, "If the markets don't buy that will trigger a response by Germany and France." A senior EU negotiator added: "No one knows where it is going to end up. Only one thing is sure, the euro zone will change." A restructuring of the euro zone could be the first step toward a future "core Europe" with implications for the fulfillment of Bible prophecy.